Searches were carried out at the residence of Karvy Stock Broking Limited chairman and managing director C Parthasarathy and the offices of Karvy in Hyderabad.
ED has booked a case under the Prevention of Money Laundering Act based on the FIRs issued by Hyderabad central crime station.
ED had earlier recorded the statement of C Parthasarathi in the case.
ED is verifying the destination and route of crime proceeds amounting to hundreds of crores in the scam.
CCS has registered four cases so far against Karvy for cheating IndusInd Bank, HDFC Bank for loan fraud and clients for diverting their stocks and money.
In one of the cases, IndusInd Bank accused Karvy management of availing credit facilities of Rs 137 crore by pledging securities.
Parthasarathi suppressed that the pledged securities belong to the clients without their consent and misused power of attorney.
The securities of clients were transferred into the Demat account of Karvy company and pledged to Indus Ind Bank. Karvy has turned into a defaulter and also diverted the funds into their own and sister companies.
In another case HDFC bank was duped to the tune of Rs 350 crore.
A case was registered on September 8 in 2021, with Sheshadripuram police station in Bengaluru city under cheating, criminal conspiracy and forgery against Parathasarty and others.