Comandur Parthasarathy, the chairman and managing director of Karvy Stock Broking Limited (KSBL), who was arrested by the Enforcement Directorate (ED), in connection with a bank fraud case, is likely to be questioned in police custody.
Prathasarathy is currently lodged in Chanchalguda jail from where he will be taken into custody. Earlier, he was lodged with Bengaluru jail and shifted to Chandhalguda jail on a prisoner transit warrant.
The Hyderabad Central Crime Station (CCS) Police lodged five cases against the firm.
Indusind Bank and HDFC Bank had alleged that the KSBL committed loan fraud by pledging the securities of its client and diverting the loan amount.
The ED initiated money laundering probe on the basis of the FIRs of Hyderabad Police and took a copy of the charge sheet and other relevant documents to probe the money laundering case.
The ED also took reports of Income-Tax, RBI, SEBI and NSE to make their case a strong one.
KSBL reportedly transferred Rs 550 crore to several accounts. Indusind Bank gave a loan of Rs 137 crore to KSBL on the basis of securities, shares and personal guarantees. One of the guarantor was chairman of KSBL, C Prathasarathy.
(With inputs from IANS)
