Sleuths of the Enforcement Directorate (ED) arrested the Chairman of Karvy Stock Broking Limited, C Parthasarathy, today.
ED officers picked up the controversial executive in Bengaluru and brought him to Hyderabad on a PR warrant.
He was later shifted to the Chanchalguda prison.
The ED arrested Parthasarathy in cases alleging money laundering.
The body had earlier charged Karvy's management with diverting the shares of his company's clients into its own demat account without their knowledge and taking loans from banks using them as collateral. The ED officials not only questioned him in the case but also conducted searches at his offices and residence.
They came to the initial conclusion that Parthasarathy had committed a fraud to the tune of Rs. 1,500 crore.
The ED is likely to take Parthasarathy into its custody in the days to come.
filed in:Crime, Business Crimes, Karvy, C Parthasarathy, Enforcement Directorate, Arrests