ED attaches belongings price Rs 110-crore in Karvy inventory broking money-laundering case
4 min readBy PTI
NEW DELHI: The Enforcement Directorate on Saturday mentioned it has connected recent belongings price over Rs 110 crore in reference to its cash laundering probe in opposition to Karvy Stock Broking Limited (KSBL), its CMD C Parthasarathy and others.
The money-laundering case was filed primarily based on FIRs by the Hyderabad Police on the complaints of lending banks who alleged the Karvy Group had availed massive quantities of loans by illegally pledging their purchasers’ shares price about Rs 2,800 crore and the mentioned loans have change into non-performing asset (NPA) after the discharge of the consumer’s securities as per the orders of NSE and SEBI.
“In order to safeguard the proceeds of crime from alienation, the Enforcement Directorate (ED) has identified and attached movable assets totalling Rs 110.70 crore,” the probe company mentioned in an announcement. With the most recent order, the overall attachment of properties by the ED, on this case, stands at Rs 2,095 crore.
“KSBL was one of the leading stock brokers in the country with millions of clients. The scam came to light after a limited-purpose inspection of KSBL conducted by the NSE in 2019 revealed that KSBL had not revealed a DP Account and credited the funds raised by pledging of client securities to 6 of its own bank accounts (Stock Broker-own Account) instead of the stock broker-client account,” the ED had mentioned earlier.
It arrested Parathasarathy, group CFO G Krishna Hari in January this 12 months as a part of the probe. Both are out on bail now. A “very complex web” of economic transactions, utilizing a number of shell entities and non-banking monetary firms (NBFCs), have been executed to hide the supply of those funds to undertaking them as untainted funds, the ED had mentioned.
“Parthasarthy had made arrangements through his group companies to pay financial benefits to his sons Rajat Parthasarthy and Adhiraj Parthasarthy in the garb of salary and reimbursement of household expenses and thus the proceeds of crime were projected as untainted money in the hands of the family members,” the ED alleged.
It claimed the probe discovered that V Mahesh, MD of KDMSL (a associated firm) senior official and key administration personnel of the Karvy group, is a detailed affiliate of Parthasarthy and he “actively assisted and planned the execution of money laundering operations.”
NEW DELHI: The Enforcement Directorate on Saturday mentioned it has connected recent belongings price over Rs 110 crore in reference to its cash laundering probe in opposition to Karvy Stock Broking Limited (KSBL), its CMD C Parthasarathy and others.
The money-laundering case was filed primarily based on FIRs by the Hyderabad Police on the complaints of lending banks who alleged the Karvy Group had availed massive quantities of loans by illegally pledging their purchasers’ shares price about Rs 2,800 crore and the mentioned loans have change into non-performing asset (NPA) after the discharge of the consumer’s securities as per the orders of NSE and SEBI.
“In order to safeguard the proceeds of crime from alienation, the Enforcement Directorate (ED) has identified and attached movable assets totalling Rs 110.70 crore,” the probe company mentioned in an announcement. With the most recent order, the overall attachment of properties by the ED, on this case, stands at Rs 2,095 crore.
“KSBL was one of the leading stock brokers in the country with millions of clients. The scam came to light after a limited-purpose inspection of KSBL conducted by the NSE in 2019 revealed that KSBL had not revealed a DP Account and credited the funds raised by pledging of client securities to 6 of its own bank accounts (Stock Broker-own Account) instead of the stock broker-client account,” the ED had mentioned earlier.
It arrested Parathasarathy, group CFO G Krishna Hari in January this 12 months as a part of the probe. Both are out on bail now. A “very complex web” of economic transactions, utilizing a number of shell entities and non-banking monetary firms (NBFCs), have been executed to hide the supply of those funds to undertaking them as untainted funds, the ED had mentioned.
“Parthasarthy had made arrangements through his group companies to pay financial benefits to his sons Rajat Parthasarthy and Adhiraj Parthasarthy in the garb of salary and reimbursement of household expenses and thus the proceeds of crime were projected as untainted money in the hands of the family members,” the ED alleged.
It claimed the probe discovered that V Mahesh, MD of KDMSL (a associated firm) senior official and key administration personnel of the Karvy group, is a detailed affiliate of Parthasarthy and he “actively assisted and planned the execution of money laundering operations.”
