ED arrests Karvy Group’s Chairman & MD C Parthasarathy and CFO G Hari Krishna in Rs 2000 cr fraud case

ED arrests Karvy Group’s Chairman & MD C Parthasarathy and CFO G Hari Krishna in Rs 2000 cr fraud case Enforcement Directorate (ED) has arrested Mr. C Parthasarathy, Chairman & MD, and Mr. G Hari Krishna, CFO, of the Karvy Group in the Rs 2000 Crore Security Scam. The Court has given 4 days Custody to ED of the arrested accused. The apprehended defendants were reportedly involved in fraud by Karvy Stock Broking Ltd (KSBL) illegally diverting clients' securities worth Rs 2873.82 crore and pledging these securities with banks and NBFCs (Non Banking Financial Companies) to seek loans, resulting in loan default. Based on a FIR filed by HDFC bank with Hyderabad Police under various sections of the Indian Penal Code for defrauding the bank, the ED launched a money laundering probe. Other banks and investors filed further FIRs as a result.