The Karvy Group is alleged to have taken huge loans from banks by illegally pledging shares worth 2800 crores of its customers. Later, on the orders of the market regulator SEBI and the National Stock Exchange (NSE), when the shares were issued to the clients, the debt became a non-performing asset (NPA). Karvy Stock Broking Limited is the leading stock brokerage company of the country and has lakhs of clients.
The scam came to light when the NSE inspected the company in 2019. Investigation revealed that the company had not disclosed the DP account and deposited the funds raised by pledging the shares of its clients in its six bank accounts in lieu of the stock broker client account. According to the ED investigation, KSBL misused the power of attorney given by the customers. The Enforcement Directorate has said that further investigation in the matter is still on.
102 plots and other properties worth crores
The ED has identified the proceeds of the crime. These include 102 plots worth Rs 213.69 crore, C Parthasarathy’s stake of Rs 438.70 crore in Kefin Technologies, besides other assets of KDMSL, non-banking financial company KFSL and KSBL worth Rs 1280 crore. According to the investigation, the funds were diverted to other fake companies including KDMSL.
Raids on 9 locations last year
The ED had on September 22 last year raided 9 locations and produced Karvy Group CMD C Parthasarathy, Chief Financial Officer G Harikrishna in a special ED court. They were arrested on January 20 this year under the Prevention of Money Laundering Act and both are currently in judicial custody. The agency said Parthasarathy was not cooperating at all in the investigation. However, he admitted some mistakes and passed on others to the CEO and CFO of the company.
Action on Akshay Gold Farms and Villas India Limited also
On the other hand, Rs 268 crore deposited in bank accounts and 376 immovable assets have been attached in a money laundering probe against the Ponzi scam run by Akshay Gold Farms & Villas India Limited and its promoters. The Enforcement Directorate took this action on Wednesday.
11 arrested for cheating in Chennai Port Trust
The Enforcement Directorate on Wednesday said it has arrested 11 people in connection with its money laundering probe related to fraud at the Chennai Port Trust. Those detained under the Prevention of Money Laundering Act (PMLA) include PV Sudlaimuthu, M Vijay Herald, M Rajesh Singh, S Siyad, K Zakir Hussain, Suresh Kumar, Ganesh Natarajan, V Manimozhi, J Selvakumar, A Seramathiraja and Arun Anbu. Are included.
The case pertains to the alleged fraud of Rs 45.05 crore in Chennai Port Trust. The investigation found that the suspects had deposited fake fixed deposit receipts with the Chennai Port Trust. He had fraudulently liquidated the fixed deposits with the help of original FD receipts kept by him within a few days of opening the FD. The ED said, it has been found that an amount of Rs 45.40 crore was fraudulently transferred to a fake current account.