ED attaches assets worth Rs 110-cr in Karvy stock broking money-laundering case
New Delhi, Jul 30: The Enforcement Directorate on Saturday said it has attached fresh assets worth over Rs 110 crore in connection with its money laundering probe against Karvy Stock Broking Limited (KSBL), its CMD C Parthasarathy and others.
The money-laundering case was filed based on FIRs by the Hyderabad Police on the complaints of lending banks who alleged the Karvy Group had availed large amounts of loans by illegally pledging their clients' shares worth about Rs 2,800 crore and the said loans have become non performing asset (NPA) after the release of the client'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 agency said in a statement.
With the latest order, the total attachment of properties by the ED in 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 said earlier.
It arrested Parathasarathy, group CFO G Krishna Hari in January this year as part of the probe. Both are out on bail now.
A "very complex web" of financial transactions, using several shell entities and non-banking financial companies (NBFCs), have been executed to conceal the source of these funds to project them as untainted funds, the ED had said.
"Parthasarthy had made arrangement 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 found that V Mahesh, MD of KDMSL (a related company) senior official and key management personnel of the Karvy group, is a close associate of Parthasarthy and he "actively assisted and planned the execution of money laundering operations".
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Vijay unable to prove majority, not invited for CM oath ceremony: Sources
Chennai: Actor-politician Vijay has reportedly not been invited to take oath as Chief Minister of Tamil Nadu after failing to demonstrate support from the required number of MLAs, sources in Raj Bhavan said.
According to media reports that quoted sources in the office of R.N. Ravi Arlekar, Vijay could not prove the backing of 118 legislators, the majority mark in the 234-member Tamil Nadu Assembly.
Despite last-minute efforts to secure support from the Viduthalai Chiruthaigal Katchi (VCK), Amma Makkal Munnetra Kazagam (AMMK), and an IUML legislator, Vijay reportedly managed support from only 116 MLAs, falling short by two members.
Sources said Vijay failed to submit letters of support from the VCK and the Indian Union Muslim League (IUML).
Later, the IUML issued a statement clarifying that it was not part of the TVK-led alliance.
Meanwhile, AMMK leader T.T.V. Dhinakaran is also said to have informed the Governor that his party would support the All India Anna Dravida Munnetra Kazhagam (AIADMK) instead.
Earlier in the evening, Vijay had met Governor Arlekar and staked claim to form the government, stating that he enjoyed the support of 118 MLAs.
