HYDERABAD: The Enforcement Directorate (ED) has attached immovable and movable assets worth Rs 110 crore under PMLA Act of 2002 as part of its investigation into the money laundering charges against Karvy Stock Broking Ltd (KSBL) and its chairman C Parthasarathy and others. With this, the total value of various KSBL assets attached has shot up to Rs 2,095 crore.
The ED had initiated a probe after several complaints from IndusInd and HDFC banks were filed with Hyderabad CCS that the Karvy Group availed loans against shares worth Rs 2,800 crore belonging to its clients. The loan amounts were subsequently diverted to KDMSL (Karvy Data Management Services Limited) and KRIL.
In a statement, the ED staed: “Funds were diverted to related companies like KDMSL and KRIL which were set up for real estate ventures. The diverted funds were routed via multiple defunct NBFCs to KFSL-NBFC to wash the bad debts. Large chunks of loan proceeds were transferred into shell insurance companies which did massive speculative share trading with KSBL as the stock broker and ostensibly suffered massive losses.
A very complex web of financial transactions, using several shell entities and NBFCs was detected. Large amounts of proceeds of crime have been invested by infusing them in the form of investments / share capital / short term advances / loans to group companies. This has resulted in enhancement of the value of the subsidiary companies of KSBL. Now the accused are trying to sell these subsidiary businesses at a profit to yield indirect windfall gains to the main accused.”
Family members of Parthasarathy, including his sons Rajat Parthasarathy and Adhiraj Parthasarathy were provided benefits of huge sums. The ED investigation revealed the role of V Mahesh, MD of KDMSL and a close aide of Parthasarathy, in money laundering activities. The ED said that it detected several assets in the form of lands, buildings, shareholdings, cash, foreign currency and jewellery. C Parthasarathy and Karvy chief finance officer G Hari, arrested by ED in January 2022, are currently out on bail.
FUNDS DIVERTED TO REAL ESTATE VENTURES
The ED said the funds were diverted to related companies like KDMSL and KRIL which were set up for real estate ventures. The diverted funds were routed via multiple defunct NBFCs to KFSL-NBFC to wash the bad debts. Large chunks of loan proceeds were transferred into shell insurance companies which did massive speculative share trading with KSBL as the stock broker