The Enforcement Directorate in a latest development regarding investigations into the alleged money laundering by Karvy Stock Broking Ltd (KSBL), has attached its ₹110 crore worth assets, a release on Saturday stated.
The ED had already attached ₹1984.84 crore worth assets in the same case.
The investigations were on the basis of First Information Reports filed by the central crime station, Hyderabad police. The complaints against KSBL by its lender banks were that it had availed large amounts of loans by illegally pledging the clients’ shares worth about ₹2,800 crore. The loans later became non-performing assets, as the clients’ securities were released on orders of NSE and SEBI.
The funds mobilised in such ways were diverted to its related companies like KDMSL and KRIL, which were set up for real estate ventures. The diverted loan funds were routed via multiple defunct non-banking finance companies to wash its bad debts and large amounts of the loans were transferred to shell insurance companies allegedly for speculative share trading with KSBL as the stock broker.
The ED also said KSBL chairman Parthasarathy had made arrangements through his group companies to pay financial benefits to his sons Rajat Parthasarathy and Adhiraj Parthasarathy in the garb of salaries and other expenses.
ED said it was also found that MD of KDMSL V. Mahesh, a close associate of Mr. Parthasarathy, was actively assisted and planned execution of the money laundering operations.
