Enforcement Directorate attaches Karvy assets worth Rs. 1984 crores

The money laundering case was filed on the basis of FIRs filed by the Hyderabad Police on the complaints of lending banks who said the Karvy Group had availed large amounts of loans by illegally pledging their clients' shares worth about Rs 2,800 crore and the loans have become NPA after the release of the clients' securities on the orders of NSE and SEBI.

Hyderabad: The Enforcement Directorate on Wednesday said it has attached assets worth Rs 1,984 crore in connection with its money laundering probe against Karvy Stock Broking Limited (KSBL) CMD C Parthasarathy and others.

"In order to safeguard the proceeds of crime from alienation, the Enforcement Directorate has attached 102 landed properties worth Rs 213.69 crore, shareholding of C Parthasarathy in KFin Technologies worth Rs 438.70 crore, and tangible/intangible assets worth Rs 1,280 crore of KDMSL, KFSL NBFC, and KSBL, etc., totaling Rs 1,984 crore," it said in a statement.

The money laundering case was filed on the basis of FIRs filed by the Hyderabad Police on the complaints of lending banks who said the Karvy Group had availed large amounts of loans by illegally pledging their clients' shares worth about Rs 2,800 crore and the loans have become NPA after the release of the clients' securities on the orders of NSE and SEBI.

"KSBL was one of the leading stockbrokers in the country with millions of clients. The scam came to light after a limited purpose inspection of KSBL conducted by NSE in 2019 revealed that KSBL had not revealed a DP (depository participant or Demat account) Account and credited the funds raised by pledging of client securities to six of its own bank accounts (Stock Broker-own Account) instead of the Stock Broker-Client Account," the ED said.

On January 20, ED authorities arrested Parthasarathy from Bangalore, brought him to Hyderabad, and shifted him to Chanchalguda Jail. Officials said the investigation into the Karvy case was ongoing.

With agency inputs