Hyderabad: The Enforcement Directorate (ED) officials, who arrested the Karvy Stock Broking Limited (KSBL) chairman and managing director (CMD) C. Parthasarathi in a bank fraud case, will question him in police custody in connection with the case.
The court had granted five-day police custody of Parthasarathi for questioning from Tuesday. The ED officials will take him into custody from Chanchalguda Central jail. They arrested him from Bengaluru jail and shifted him to the city on a prisoner transit warrant. The ED officials had nabbed the accused in a case registered by the Hyderabad CCS police earlier.
According to officials, Karvy Stock Broking Limited (KSBL) management indulged in bank frauds and diverted Rs 550 crore to other accounts. Even as a total five cases were registered by the Hyderabad Central Crime (CCS) police, the ED officials had taken up a probe into one IndusInd bank fraud case and are investigating it.
The ED officials have obtained charge sheets and reports submitted by the Hyderabad CCS police, Income-Tax, RBI, SEBI and NSE. Based on the reports, the ED officials have intensified the probe.
The KSBL had availed credit facilities of Rs 137 crore from IndusInd bank by pledging securities and shares and personal guarantee of its CMD Parthasarathi, by suppressing the facts that the pledged securities belong to customers. The securities were transferred into the Demat account of Karvy Stock Broking Private Limited and pledged before the IndusInd bank for margin and short term requirement in their businesses.
It was also found that the KSBL management transferred Rs 1,000 crore to Karvy Realty company during the 2016 and 2019....