HYDERABAD: The Enforcement Directorate (ED) on Friday issued orders to freeze the shares of the accused in the Karvy scam under the Prevention of Money Laundering Act (PMLA). Sources said the estimated value of the share was said to be Rs 700 crore as per the evaluation report.
On September 22, the ED raided six locations in Hyderabad and on various premises of Karvy group of companies, connected entities and residential premises of C. Parthasarathy, the chairman and managing director of the group.
According to officials, the total loans taken by Karvy are estimated to be around Rs 3,000 crore and Rs 1,096 crore was transferred by Karvy Stock Broking Limited (KSBL) to its group company Karvy Realty (India) Ltd from April 2016 to October-2019.
“Several incriminating evidences in the form of property documents, personal diaries, electronic devices, email dumps, etc have been seized and are being analysed. It is reliably learnt that C. Parthasarathy is trying to off-load his shares in the group companies through private deals and thus, in order to preserve the proceeds of crime till further investigation, the ED has issued a freezing order on September 24 and the estimated value of these shares has been arrived at Rs 700 crore as per the valuation for the year 2019-20," the financial probe agency said in a statement on Saturday.
The investigation conducted by the agency also found that deletion of files and emails from the computer servers by using anti-forensic tools had been done, under the instructions of Parthasarathy. Following this, the ED conducted searches at six KSBL locations and froze shares of Karvy Group held directly and indirectly by Parthasarathy, his sons Rajat Parthasarathy and Adhiraj Parthasarathy, and their entities in order to safeguard the proceeds of crime.
The bank statement analysis of these companies revealed that there was a large value rotation of funds between the Karvy group companies and their shell companies’ bank accounts. Earlier, the ED has recorded the statement of Parthasarathy in Chanchalguda Jail after he was arrested by the Telangana police last month.