Borrowing money

Rs 110 crore in attached assets – The New Indian Express

By Express press service

HYDERABAD: The Enforcement Directorate (ED) has seized immovable and movable property worth Rs 110 crore under the PMLA Act 2002 as part of its investigation into money laundering charges against Karvy Stock Broking Ltd (KSBL) and its Chairman C Parthasarathy and others. With this, the total value of various attached KSBL assets soared to Rs 2,095 crore.

The ED had launched an investigation after several complaints from IndusInd and HDFC banks were lodged with Hyderabad CCS that Karvy Group had benefited from loans against shares worth Rs 2,800 crore owned by its clients. The loan proceeds were then diverted to KDMSL (Karvy Data Management Services Limited) and KRIL.

In a statement, the ED said: “Funds were diverted to related companies like KDMSL and KRIL which were set up for real estate projects. The embezzled funds were routed through several former NBFCs to KFSL-NBFC to clear bad debts. Much of the loan proceeds were transferred to fictitious insurance companies which made huge speculative equity trades with KSBL as the stockbroker and apparently suffered massive losses.

A very complex network of financial transactions, using several fictitious entities and NBFCs, has been detected. Large amounts of proceeds of crime have been invested by infusing them as investments/share capital/short term advances/loans to group companies. This resulted in an increase in the value of KSBL’s subsidiaries. Now the defendants are trying to sell these subsidiaries for a profit to bring collateral gains to the main defendant. »

Parthasarathy’s family members including his sons Rajat Parthasarathy and Adhiraj Parthasarathy received huge sums. The ED investigation revealed the role of V Mahesh, MD of KDMSL and close associate of Parthasarathy, in money laundering activities. ED said it detected multiple assets in the form of land, buildings, equity, cash, foreign currency and jewelry. C Parthasarathy and Karvy’s CFO G Hari, arrested by ED in January 2022, are currently out on bail.

FUNDS DIVERTED TO REAL ESTATE SALES
ED said the funds were diverted to related companies such as KDMSL and KRIL, which were set up for real estate projects. The embezzled funds were routed through several former NBFCs to KFSL-NBFC to clear bad debts. Much of the proceeds from the loans were transferred to shell insurance companies who conducted massive speculative stock exchanges with KSBL as the stockbroker.

HYDERABAD: The Enforcement Directorate (ED) has seized immovable and movable property worth Rs 110 crore under the PMLA Act 2002 as part of its investigation into money laundering charges against Karvy Stock Broking Ltd (KSBL) and its Chairman C Parthasarathy and others. With this, the total value of various attached KSBL assets soared to Rs 2,095 crore. The ED had launched an investigation after several complaints from IndusInd and HDFC banks were lodged with Hyderabad CCS that Karvy Group had benefited from loans against shares worth Rs 2,800 crore owned by its clients. The loan proceeds were then diverted to KDMSL (Karvy Data Management Services Limited) and KRIL. In a statement, the ED said: “Funds were diverted to related companies like KDMSL and KRIL which were set up for real estate projects. The embezzled funds were routed through several former NBFCs to KFSL-NBFC to clear bad debts. Much of the loan proceeds were transferred to fictitious insurance companies which made huge speculative equity trades with KSBL as the stockbroker and apparently suffered massive losses. A very complex network of financial transactions, using several fictitious entities and NBFCs, has been detected. Large amounts of proceeds of crime have been invested by infusing them as investments/share capital/short term advances/loans to group companies. This resulted in an increase in the value of KSBL’s subsidiaries. Now the defendants are trying to sell these subsidiaries for a profit to bring collateral gains to the main defendant. Parthasarathy’s family members, including his sons Rajat Parthasarathy and Adhiraj Parthasarathy received huge sums. The ED investigation revealed the role of V Mahesh, MD of KDMSL and close associate of Parthasarathy, in money laundering activities. ED said it detected multiple assets in the form of land, buildings, equity, cash, foreign currency and jewelry. C Parthasarathy and Karvy’s CFO G Hari, arrested by ED in January 2022, are currently out on bail. FUNDS DIVERTED TO REAL ESTATE COMPANIES ED said the funds had been diverted to related companies such as KDMSL and KRIL, set up for real estate projects. The embezzled funds were routed through several former NBFCs to KFSL-NBFC to clear bad debts. Much of the proceeds from the loans were transferred to shell insurance companies who conducted massive speculative stock exchanges with KSBL as the stockbroker.