Karvy CMD Parthasarathy remanded to four-day judicial custody

Karvy Stock Broking Ltd chairman and managing director C Parthasarathy has been remanded to four-day judicial custody by the ED special court on Tuesday.

The officials Enforcement Directorate (ED) will question Parthasarathy from January 27 to 30. It is known that Parthasarathy has been taken into custody by the ED in Bengaluru and brought to Hyderabad on PT warrant. He was later placed in Chanchalguda jail before producing him in ED court.

The ED will Parthasarathy into custody to inquire about the transferring the investors' shares and diverting funds to sister companies.

Earlier, the bank officials approached the Central Crime Station (CCS) police after Karvy company failed to repay the loan obtained on the shares' of the investors. The ED also swung into action and registered a money laundering against him. The officials found that Parthasarathy transferred the shares of investors into his demat account and obtained loan from various banks.

The ED had already raided his office and residence and seized several key documents. Around Rs 1,500 crore is said to have been swindled.

Earlier, Parthasarathy was taken into custody by the police in September last year. The police questioned him on the cases registered against him by HDFC bank for availing a loan of Rs 350 by pledging the shares of investors illegally.