This story is from September 22, 2021

Karvy scam: ED raids six locations in Hyderabad

Enforcement Directorate (ED) on Wednesday conducted searches at six locations in Hyderabad in connection with Karvy stock broking scam.
Karvy scam: ED raids six locations in Hyderabad
ED has booked a case under the Prevention of Money Laundering Act based on the FIRs issued by Hyderabad central crime station.
HYDERABAD: Enforcement Directorate (ED) on Wednesday conducted searches at six locations in Hyderabad in connection with Karvy stock broking scam.
Searches were carried out at the residence of Karvy Stock Broking Limited chairman and managing director C Parthasarathy and the offices of Karvy in Hyderabad.
ED has booked a case under the Prevention of Money Laundering Act based on the FIRs issued by Hyderabad central crime station.

ED had earlier recorded the statement of C Parthasarathi in the case.
ED is verifying the destination and route of crime proceeds amounting to hundreds of crores in the scam.
CCS has registered four cases so far against Karvy for cheating IndusInd Bank, HDFC Bank for loan fraud and clients for diverting their stocks and money.
In one of the cases, IndusInd Bank accused Karvy management of availing credit facilities of Rs 137 crore by pledging securities.
Parthasarathi suppressed that the pledged securities belong to the clients without their consent and misused power of attorney.

The securities of clients were transferred into the Demat account of Karvy company and pledged to Indus Ind Bank. Karvy has turned into a defaulter and also diverted the funds into their own and sister companies.
In another case HDFC bank was duped to the tune of Rs 350 crore.
A case was registered on September 8 in 2021, with Sheshadripuram police station in Bengaluru city under cheating, criminal conspiracy and forgery against Parathasarty and others.
Bangalore central Crime Branch(Organised Crime Branch) is investigating the case.
Parthasarathy is the director of Karvy Reality(India) Private Limited to which the complainant has transferred Rs 109 crore.
Parthasarathy is also accused in case of cheating of Rs 25 lakh in Barnala of Punjab.
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About the Author
U Sudhakar Reddy

Sudhakar Reddy Udumula is the Editor (Investigation) at the Times of India, Hyderabad. Following the trail of migration and drought across the rustic landscape of Andhra Pradesh and Telangana, Sudhakar reported extensively on government apathy, divisive politics, systemic gender discrimination, agrarian crisis and the will to survive great odds. His curiosity for peeking behind the curtain triumphed over the criminal agenda of many scamsters in the highest political and corporate circles, making way for breaking stories such as Panama Papers Scam, Telgi Stamp Paper Scam, and many others. His versatility in reporting extended to red corridors of left-wing extremism where the lives of security forces and the locals in Maoist-affected areas were key points of investigation. His knack for detail provided crucial evidence of involvement from overseas in terrorist bombings in Hyderabad.

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