NEW DELHI: The Enforcement Directorate (ED) said on Wednesday it has attached immovable and movable properties in the form of lands, buildings and shareholdings worth Rs 1984 crore belonging to Karvy Stock Broking and its chairman C Parathasarathy and others in a money laundering case.
ED initiated a money-laundering investigation on the basis of FIRs filed by the CCS Police Station, Hyderabad Police, on the complaints of lending Banks who complained that the Karvy Group had availed large amounts of loans by illegally pledging their clients’ shares worth about Rs 2800 crore and the said loans have become NPA after the release of the client’s securities as per the orders of the National Stock Exchange and the market regulator Securities and Exchange Board of India (SEBI).
Karvy Stock Broking Limited (KSBL) was one of the leading Stock Brokers in the country with millions of clients.
The scam came to light after a limited purpose inspection of KSBL conducted by NSE in 2019 revealed that KSBL had not revealed a DP Account and credited the funds raised by pledging of client securities to 6 of its own bank accounts (“Stock Broker-own Account”) instead of the “Stock Broker-Client Account”.
“In order to safeguard the proceeds of crime from alienation, ED has identified and attached 102 number of landed properties worth Rs 213.69 crore, shareholding of C Parathasarathy in M/s KFin Technologies worth Rs 438.70 crore and tangible/intangible assets…
