HYDERABAD, INDIA: Comandur Parthasarathy, the chairman and managing director of Karvy Stock Broking Limited (KSBL), is expected to be questioned in police custody after being arrested by the Enforcement Directorate (ED) on Sunday in connection with a bank fraud case.
The alleged accused has been placed in the agency's custody for five days. Prathasarathy is now being held in the Chanchalguda jail and will be taken into custody shortly. On a prisoner transit warrant, he was detained in Bengaluru jail and sent to Chandhalguda jail.
Initially, a case was filed against him by the Hyderabad Central Crime Station (CCS) Police. The Hyderabad Police Department has filed five complaints against the company. The KSBL allegedly committed loan fraud by pledging its client's securities and transferring the loan amount, according to Indusind Bank and HDFC Bank.
On the basis of Hyderabad Police's FIRs, the ED launched a money laundering investigation. In this case, the Hyderabad CCS Police had filed a chargesheet. The ED took a copy of the charge sheet and other necessary documents to investigate the money laundering case after starting a PMLA investigation. The ED also used reports from the Internal Revenue Service, the Reserve Bank of India, the Securities and Exchange Commission, and the National Stock Exchange to bolster their case.