HYDERABAD: The Telangana High Court on Tuesday granted a huge relief to Karvy Stock Broking Limited(KSBL) managing director C Parthasarthy by quashing the remand order passed by the Metropolitan Sessions Judge-cum-Special Court under the Prevention of Money Laundering Act (PMLA) against him.
Justice K Lakshman of the High Court said that the petitioner (Parthasarthy) was free to file a fresh bail application under Section 167(2) of CrPC before the designated court in Hyderabad which in turn has to evaluate the petition.
The judge said that a complaint or a report cannot be considered a definitive one until the investigation is concluded. The inquiry in this instance is apparently incomplete, and the statutory term of 60 days had lapsed on March 21, 2022. As a result, the petitioner is entitled to statutory bail under Section 167(2) of the CrPC in the absence of a comprehensive investigation and the filing of a final complaint.
The respondent authority, the Enforcement Directorate, has lodged three separate Enforcement Case Information Reports (ECIR) against KSBL for money laundering under the PMLA. The charges against KSBL and the petitioner included diversion of enormous amounts of clients’ cash through shell companies, resulting in massive losses for investors.
It was also claimed that the clients’ money was misappropriated using KSBL-created shell companies and transferred to the petitioner and his family members.The petitioner was arrested and sent to judicial remand for the alleged crimes.