The Enforcement Directorate (ED) has frozen shares of stockbroker company Karvy Stock Broking Limited (KSBL) worth Rs 700 crore after a raid campaign against CMD, C. Parthasarathy and some other officials. Parthasarathy has been arrested by the Telangana Police and sent to Chanchalguda Jail in Hyderabad. The investigation is going on in the money laundering case against C. Parthasarathy and some officials of the company. The ED gave this information on Saturday.
Raids on Karvy Group’s locations at six places in Hyderabad
On September 22, the ED had raided the premises of Karvy Group at six places in Hyderabad. Many offices of companies and houses of officials were raided. According to the ED statement, raids were conducted at the houses of the company’s CMD Parthasarathy and the buildings attached to them. Several property documents, personal diaries, electronic devices and dumped e-mails were recovered from their possession. All these things have been recovered. ED investigating officers are analyzing them.
Parthasarathy wanted to sell Karvy shares: ED
The ED has said in its statement that it had come to know from reliable sources that C. Parthasarathy wanted to extract shares of group companies through the private deals. Therefore, it ordered the freezing of the shares to keep them safe till further investigation. The ED gave these orders on September 24, according to the valuation of 2019-20, the value of these shares can be Rs 700 crore.
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The investigation is being done on the basis of FIR of Telangana Police
These shares are directly and indirectly owned by Karvy Group CMD C Parthasarathy and his sons Rajat Parthasarathy and Adhiraj Parthasarathy and their companies. A case has been registered against Parthasarathy in a money laundering case. This investigation is being done on the basis of the FIR of Telangana Police, which states that Karvy Stock Broking Limited (KSBL) VS took a loan of Rs 329 crore by pledging the securities of its clients and used it in some other work.