HYDERABAD: The Enforcement Directorate (ED) on Wednesday conducted raids on Karvy Stock Broking Limited (KSBL) offices at several locations in the city and in different parts of the country, in connection with the money laundering probe.
These are based on cases registered against the firm by the Hyderabad city police. During the searches which began on Wednesday morning, the ED is learnt to have seized several documents and electronic devices. The agency has already questioned KSBL CMD C Parthasarathy who is in judicial remand in connection with the cases registered at Central Crime Station of Hyderabad.
While KSBL is alleged to have cheated IndusInd, ICICI and HDFC banks, by pledging the shares of its clients illegally and obtained loans, ED is probing the money trail. It was learnt that the loans obtained by pledging the shares of its clients without their consent, have been diverted to several sister concerns of the group and also entities floated by promoters of the group.
CMD C Parthasarathy, COO Rajiv Ranjan Singh, CFO G Krishna Hari company secretary Y Sailaja and Srikrishna Gurazada Vice-President and Risk Head of KSBL have been arrested by the Hyderabad police so far.