The Enforcement Directorate (ED) on Thursday informed that it has arrested C Parthasarathy, Chairman and MD, and G Hari Krishna, CFO, of the Karvy Group in the ₹2000 Crore Security Scam.
The agency said that it has got the custody of the arrested accused for four days.
In a statement, the central agency said it has arrested Parthasarathy, Krishna Hari under Prevention of Money laundering Act (PMLA), 2002, in a money laundering case connected with the fraud committed through illegal diversion of clients’ securities by Karvy Stock Broking Ltd worth ₹2873.82 crore and pledging of these securities with banks/ NBFCs for seeking loans and subsequent loan default.
The ED started money laundering investigation based on the FIR filed by HDFC Bank with CCS Hyderabad Police under various sections of IPC for defrauding HDFC Bank.
The probe agency recorded the statement of various employees of the Karvy Group, and conducted searches at 9 locations last year in September.
The agency said that it has uncovered the complex web of transactions designed by the senior management of the Karvy Group to misuse the securities of their clients and to raise loans…
