New Delhi: In Fraud Stock Market Rs 2,800crore and money laundering case, Ed has captured the Karvy Group Cmd Cmd Parthasarathy and CFO G Krishna day under the prevention of money laundering laws.
Agencies have the previous attached assets worth 700 crore in this case.
The agency claims that the Carvy Group illegally divert client securities worth Rs 2,874 Crore, promising them with banks for loans and then washing results.
Parthasarathy and the day they are currently nesting in Bengaluru’s center prison after being arrested in fraud cases.
They have been arrested again by Ed for Custodian interrogation in money laundering.
The Ed Probe began on the basis of the FIR HDFC Bank submitted by Hyderabad police.
Agency has searched against group entities in September last year and then recorded a statement of several employees.
The agency said it had explored a “complex transaction network designed by senior management of the Karvy group to abuse their client’s effects and to increase loans cheating”.
Funds produced through bank loans are rotated through several companies and diverted for other purposes.
Stocks are also transferred to Margin / Pool accounts from the Karvy Stock Broking Ltd (KSBL) and are guaranteed by the bank.
“The power of lawyers provided by the client to the Karvy Group to facilitate the completion of the exchange is highly misused in the direction of CMD and senior executives,” Ed claimed.
It has been named Parthasarathy and the day as the main conspirator in this case.
The defendant was borne illegally borrowed loan funds to at least14 Shell companies after transferring them to the Carvy Realty (India) group company.
All 14 Shell companies floated by the Karvy group and various financial consultants and dead NBFC were used to route funds, said the body.
“Furthermore, it is known that the Karvy Group utilizes a loan from the NBFC to the RS 400 Crore tone in the name of the five Shell companies by ensuring client shares after illegally transfer their shares to their account,” Ed claims.