The Enforcement Directorate (ED) has attached properties worth ₹1,984 crore in connection with the money laundering probe against Karvy Stock Broking Limited (KSBL), its chairman Comandur Parthasarathy and others.
The action is based on the First Information Reports (FIRs) registered by the Hyderabad police following complaints from the lending banks that the Karvy group had allegedly taken huge loans by pledging its clients’ shares worth about ₹2,800 crore. The loan accounts became non-performing assets after the release of the clients’ securities on the orders of the National Stock Exchange (NSE) and the Securities and Exchange Board of India (SEBI).
“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 (depository participant) account and credited the funds raised by pledging of client securities to six of its own bank accounts (‘stock broker-own account’) instead of the ‘stock broker-client account’,” said the agency.
.png?w=600)
