Hyderabad: ED freezes Rs 700 worth crore shares of Karvy

The Enforcement Directorate (ED) on Saturday froze Rs 700 worth crore shares of Karvy under the money laundering act. The shares were frozen after the raids against Karvy Stock Broking Limited (KSBL) CMD C Parthasarathy and others.

The ED stated that all the banks of Karvy under CCS and Cyberabad limits lodged a complaint. Based on the FIR, an inquiry has been initiated, said the officials.

The ED further said that Karvy mortgaged the shareholders shares with banks and borrowd Rs 2,873 crore of loan which is against the provisions and the loans were later transferred to the personal accounts.

Karvy CMD Parthasarathy is currently lodged in Chanchalguda jail after getting arrested by the police last month. The ED carried out searches on September 22 at six locations in Hyderabad.