ED Searches Franklin Templeton Offices In Mumbai & Chennai

The Enforcement Directorate is conducting searches in Mumbai and Chennai at locations associated with asset manager Franklin Templeton and its former and current executives as part of a money laundering investigation, according to officials.

The federal agency is looking to gather more evidence as part of its investigation into the company and its promoters under the Prevention of Money Laundering Act (PMLA), the officials said.

Following its April 2020 decision to wind up six debt schemes with Rs 25,000 crore in assets under management (AUM) from 3 lakh investors, capital markets regulator Sebi issued a show-cause notice to the company in November 2020, citing liquidity challenges caused by the pandemic.

Finally, the company was ordered to pay a Rs 5 crore penalty, return over Rs 450 crore in investment management and advisory fees collected over a 22-month period, and be barred from launching new debt schemes due to alleged irregularities in the operation of the six debt schemes.

Following that, the Chennai police economic offences wing (EOW) filed an FIR to investigate the alleged irregularities. This complaint led to the ED case of money laundering.

In 2021, Sebi barred asset manager heads Vivek Kudva and Roopa Kudva from accessing the securities market and buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any way, for a year.