ED begins probe against Franklin Templeton
- The central agency has registered a case on the basis of an FIR registered by Chennai Economic Offences Wing in September last year
The Enforcement Directorate (ED) has launched a money laundering probe against Franklin Templeton for allegedly defrauding millions of investors after the fund house abruptly closed down its six debt schemes in April last year, a senior official confirmed to HT.
The central agency has registered a case on the basis of a First Information Report registered by Chennai Economic Offences Wing in September last year.
A larger number of investors have dragged Franklin Templeton to court demanding refund of their investments.
A forensic audit of Franklin Templeton had revealed that its officials sold their investments in mutual fund schemes just before the closure. The six shut funds had an estimated ₹25,000 crore as assets under management.
The ED will look into the money laundering aspect in the matter for which it will summon company executives.
The story will be updated when comments from Franklin Templeton will be available.