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ED attaches property worth Rs 110 crore in KSBL case

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The Enforcement Directorate (ED) on Saturday said that they have attached immovable and movable assets worth Rs 110 crore in the money laundering investigation against Karvy Stock Broking Ltd (KSBL), its Chairman Comandur Parthasarathy and others.

With the fresh attachments, the total now stands at Rs 2,095 crore.

In March, the ED had attached immovable and movable properties in the form of land, buildings and share holdings worth Rs 1,984 crore.

The probe agency initiated its investigation on the basis of FIRs filed by the CCS Police Station, Hyderabad Police, on the complaints of lending Banks who complained that the Karvy Group had availed large amounts of loans by illegally pledging their clients’ shares worth about Rs 2,800 crore and the said loans became NPA after the release of the client’s securities as per the orders of NSE and SEBI.

KSBL was one of the leading Stock Brokers in the country with millions of clients. The scam came to light after a limited purpose inspection of KSBL conducted by NSE in 2019 revealed that KSBL had not revealed a DP Account and credited the funds raised by pledging of client securities to six of its own bank accounts (“Stock Broker-own Account”) instead of the “Stock Broker-Client Account”.

The ED collected the audit conducted by NSE and the orders passed by SEBI and ROC against KSBL and the forensic audit reports of BDO India LLP.

In 2021, the ED conducted searches at nine locations. This year, Parathasarathy, and G. Hari Krishna, CFO, were arrested and were sent to judicial custody.

The agency said that the accused were evasive throughout the questioning.

According to ED investigation, KSBL had misused the Power of Attorney given by its clients and misused the same to illegally raise loans.

Shares of clients who did not owe any funds to KSBL had been transferred to the Pool Account of KSBL and were pledged with the banks by making misleading declaration of ownership.

“Share transfers were done from the client’s accounts for which the KSBL’s Sales Team claimed that they had taken clients’ approval for stock lending through phone or orally, but there were no supporting documentary evidence,” said an ED official.

Large amounts of proceeds of crime were ‘invested’ by the accused in the form of investments, short term advances, loans to group companies. This resulted in enhancement of the value of the subsidiary companies of KSBL.

“Now the accused were trying to sell these subsidiary businesses at a profit to yield indirect windfall gains to the main accused,” the ED said.

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Shiv Sena (UBT) MP Sanjay Raut Urges PM Modi To Announce Relief For Flood-Affected Farmers During His Mumbai Visit

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Pune: MP Sanjay Raut on Saturday said Prime Minister Narendra Modi, during his visit to Mumbai, should announce assistance for farmers who faced losses due to the recent floods in Maharashtra.

Speaking to reporters here, Raut said the Central government should have declared a relief package for farmers.

Earlier this week, Fadnavis said that rains and floods had damaged 60 lakh hectares of land in Maharashtra, as per the initial estimate, and the government has decided to extend all benefits and measures usually provided during drought to the affected people.

He, however, didn’t declare a “wet drought” as demanded by the Opposition, saying no such provision exists in the official manual.

Raut said, “A relief package for farmers should have been announced from Delhi. The prime minister should announce assistance for flood-affected farmers during his visit to Mumbai.”

He further slammed Shiv Sena leader Ramdas Kadam over his claims about a delay in the announcement of party founder Bal Thackeray’s death in 2012.

“Ramdas Kadam was never a trustworthy person. Uddhav Thackeray got him elected to the legislative council twice. What contributions have Neelam Gorhe and Kadam made to the party? They should be grateful to Uddhav Thackeray,” the Rajya Sabha MP said.

Kadam on Thursday claimed that Bal Thackeray’s body was kept at his Mumbai home for two days before the announcement of his death in 2012.

He also alleged that the party founder’s fingerprints were taken after his death.

Raut said, “I was present during Balasaheb’s final moments. Kadam’s claim is an example of how low a person can stoop for position and money. Those who have left the party can never remain loyal to Balasaheb or truly consider him their guiding figure.”

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5 Kuki militants among 12 extremists held in Manipur; arms seized

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Imphal, Oct 4: The security forces have arrested 12 dreaded militants of different banned outfits, including five cadres of the United Kuki National Army (UKNA) from different districts of Manipur during the past 24 hours, officials said on Saturday.

A police official said that the security forces, including Assam Rifles, arrested five dreaded and active cadres of UKNA from Songkot village area in Churachandpur district.

The UKNA is an outlawed Kuki extremist outfit, active mainly in the hill districts of Manipur.

The arrested cadres of UKNA identified as Paolenlal Kipgen (30), Kamgoulen (23), Lhunkholen Singson (26), Khaiginpau (37) and Thangzasuan (14).

The official said that from their possession, one M79 grenade launcher with three bombs, two 9mm pistols with five rounds, eight radio sets along with four chargers, eight pairs of jungle shoes, three kg of opium seeds and three mobile phones were recovered.

On October 2, the security forces arrested the self-styled Commander-in-Chief of another Kuki militant outfit — Chin Kuki Mizo Army (CKMA) Paokholen Guite from the same Churachandpur district.

According to the official, Guite was involved in the trafficking of weapons and drugs across the India-Myanmar border for those militant outfits that have not signed the suspension of operations agreement with the state government.

He was also involved in extortion activities.

Two AK-47 rifles with two magazines, 31 7.62 AK-47 rounds, 150 rounds of 7.62 SLR and LMG, cash amounting to Rs one lakh, a bullet-proof pouch, a car, and two mobile phones were also seized from Guite’s possession.

The official added that during the past 24 hours, besides the five UKNA guerrillas, seven more militants were arrested from Imphal West and Thoubal districts.

The arrested militants belonged to different factions of Kangleipak Communist Party (KCP) and People’s Liberation Army (PLA).

The seven arrested extremists include, self-styled Corporal of PLA Nongmaithem Sidananda Singh alias Nanao alis Lenin (38).

These militants were involved in abduction of people, extortion from the people in Manipur valley region, mediation between parties through intimidation and in cases related to crimes against women.

The security forces rescued one Soyam Sanayamba Thomas (35) of Thamnapokpi village under Imphal East district, who had strayed into Twinomjang village, Kangpokpi district, a tribal-inhabited district.

He has been handed over to his family.

The official said that the security forces continue to conduct search operations and area domination in the fringe and vulnerable areas across districts.

The movement of 346 vehicles carrying essential items along Imphal-Jiribam National Highway (NH-37) has been ensured without any incident.

Strict security measures are taken up in all vulnerable locations and security convoys are provided in sensitive stretches in order to ensure free and safe movement of the vehicles.

According to the official, a total of 114 nakas/checkpoints were set up in different districts, both in the hills and the valley region, to prevent untoward and illegal movements of inimical elements and suspected vehicles.

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JD(U) demands one-phase polling in ECI meeting with 12 political parties in Patna

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Patna, Oct 4: The Election Commission of India (ECI) on Saturday held a crucial meeting with 12 recognised political parties in Patna ahead of the Bihar Assembly elections. Chief Election Commissioner Gyanesh Kumar chaired the meeting and assured that all suggestions put forward by the parties would be considered before finalising the poll schedule. The ruling JD(U) sought Assembly polls to be held in a single phase.

Speaking to reporters after the meeting, JD(U) working president Sanjay Jha, who represented the party, demanded that the Assembly polls be conducted in a single phase.

“We have thanked the Commission for successfully conducting the Special Intensive Revision (SIR) of the voter list. We have requested that the Bihar elections be held in one phase. Law and order and Naxalism are no longer issues in Bihar. If elections can be held in one phase in Maharashtra, why not here? Paramilitary forces should be deployed at all polling stations so that the poor face no difficulties in voting,” Jha said.

Jha also suggested that election dates should be fixed, keeping in mind the Chhath festival, so that people returning home for the festival can also cast their votes.

On the other hand, the RJD’s Aurangabad MP Abhay Kushwaha and the party’s election convener Chitranjan Gagan, who represented the party at the meeting, demanded that polling be conducted in two phases.

“We have asked the CEC to release the data of the 3.64 lakh voters deleted during the SIR process. We have also sought complete security arrangements in Dalit, Mahadalit, extremely backward and backward caste villages, so that these communities can vote freely. In the past, they were often prevented from voting,” Kushwaha said.

Responding to the BJP’s demand that women in burqas be verified by female officers, Kushwaha said: “A new voter list with photographs has already been published after the SIR. Despite this, if the BJP is making such demands, it is nothing but politics.”

The ECI’s consultations mark a significant step in finalising preparations for the high-stakes Bihar polls.

Political observers believe the Commission may announce election dates shortly, with voting likely to take place in multiple phases across the state.

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