Hyderabad:The Enforcement Directorate (ED) arrested Karvy Stock Broking Limited managing director Parthasarathy on Monday in a case of fraudulently diverting investors' shares in the stock market into his own account. He was brought from Bengaluru and lodged in Chanchalguda jail, Hyderabad.
Police are investigating the matter on the basis of a case of money laundering registered in Central Crime Station (CCS) against him.
Meanwhile, Parthasarathy, who is a remand prisoner in the Bangalore jail, was brought to Hyderabad on a Prisoner Transit warrant and produced before a special court by the ED authorities. He was remanded in custody for 14 days on court orders.
Parthasarathy diverted the shares of the investors who buy shares in the stock market through Karvy Stock Broking Limited to his own account, mortgaged them, and borrowed nearly Rs 1,500 crore from various banks. The ED officers registered a money laundering case based on the FIR registered by the Hyderabad CCS police.
The ED officers have collected complete information from the CCS police regarding the case and have also seized several key certificates from Parthasarathy's house.
The ED authorities initially found that they had taken loans from banks and diverted them to companies and bought various assets through them.
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