HYDERABAD: Enforcement Directorate (ED) on Sunday recorded the statement of incarcerated Karvy Stock Broking Limited (KSBL) chairman and managing director (CMD) C Parthasarathi in connection with a money laundering case.
ED officials visited the Chanchalaguda jail on Sunday after obtaining court orders and recorded the statements of prime accused Parthasarathi. ED would continue grilling him on Monday and Tuesday. ED had asked for seven-day permission, but the court granted three days to record the statement in judicial custody.
ED had registered a case under the Prevention of Money Laundering Act (PMLA) based on an FIR issued by Hyderabad police’s Central Crime Station.
CCS has registered four cases so far against Karvy for cheating IndusInd Bank, HDFC Bank and clients. IndusInd Bank alleged that Karvy had availed credit of Rs 137 crore by pledging securities and personal guarantee of CMD Parthasarathi. The accused suppressed the fact that the pledged securities belong to the clients and was done without their consent, misusing power of attorney. The securities were transferred into the demat account of Karvy and pledged for margin and short-term requirements. The accused became a defaulter by diverting the funds into their own owns and those connected to businesses entities.
Similarly, HDFC Bank was allegedly duped to the tune of Rs 350 crore.
“We have received a complaint from a client who alleged that his account had a few crore rupees of money but it has been taken to minus 25 crores. This is the fourth case we have registered,” a CCS official said. CCS had earlier obtained custody of Parthasarathi twice and recorded his statements. CCS arrested two others in the case recently.
