Telangana: ED Arrests Karvy Chairman And Managing Director Parthasarathy In Fraud Case

There are allegations that the Karvy company was involved in a Rs 1,500 crore scam

Karvy Chairman Parthasarathy (Image:ABP Desam)

Hyderabad: The Enforcement Directorate (ED) has arrested Karvy Stock Broking Limited chairman and managing director (CMD) C Parthasarathy for allegedly laundering money. ED has booked a case under the Prevention of Money Laundering Act (PMLA) against Parthasarathy. 

ED sources said that he was brought from Bengaluru and lodged in a Chanchalguda Central jail as the agency decided to seek custody.

Earlier, The banks have complained of the Hyderabad Central Crime police station over the non-payment of loans taken by Karvy Stock Broking Company from banks. Police have registered a case and are investigating the complaint.

A police investigation has revealed that Karvy committed fraud in the name of investing in the stock market. The ED also registered a case and launched an investigation after it was confirmed that money laundering had taken place. ED found that Parthasarathy had diverted investors' shares to his accounts, mortgaged them and obtained bank loans.

The accused's shares, valued at roughly 700 crores, were already frozen by the ED, reports The Hans India. The officials reportedly stated that between 2016 and 2019, the accused acquired a loan of Rs 3,000 crore, of which Rs 1,096 crore was transferred to the real estate company. During a preliminary investigation, it was also established that the corporation used anti-forensic software to destroy files and emails from servers on Parathasarathy's orders.

The Bombay Stock Exchange and National Stock Exchange of India Ltd revoked Karvy stockbroking trading licenses. Stock Market regulator SEBI has also imposed a ban on Karvy. There are allegations that the Karvy company alone was involved in a Rs 1,500 crore scam.

The Multi Commodity Exchange (MCX) has already revoked the brokerage license of Karvy Stock. As a result, investors will not trade on the exchanges through the Karvy platform.

(With inputs from ABP Desam — It is a Telugu platform of ABP News. For more news, commentary and latest happenings from two Telugu states, follow https://telugu.abplive.com/)