Enforcement Directorate launches money laundering probe against Franklin Templeton

The ED has registered a case on the basis of an FIR registered by the Chennai Police Economic Offences Wing in September last. The Chennai’s EOW had registered a case of cheating against Franklin Templeton after it had come under the scanner for the sudden closure of six debt schemes in April last year.

Franklin Templeton is accused of hatching a criminal conspiracy to dupe its innocent investors for its own unlawful gains.

A forensic audit of Franklin Templeton had shown that its officials sold their investments in mutual fund schemes just before their closure.

The six shut mutual fund schemes had an estimated Rs 25,000 crore as assets under management (AUM). Till January 29 these six schemes had received total cash flows of Rs 14,391 crore from maturities, pre-payments and coupon payments since their closing down on April 24 last year.

Franklin Templeton’s investment strategy, code of conduct, redemptions before announcing the closure of schemes and the role of board members as well as trustees while handling risk had already been under the scanner of the federal agency.

Having registered a case, the Enforcement Directorate (ED) will now examine whether the “gains” made by the officials of Franklin Templeton were unlawful and laundered, said people in know.