Thrissur: Following the raids held in different premises of the Kerala-based NBFC Manappuram Finance Ltd on Thursday said that assets worth Rs 143 crore of V P Nandakumar, the MD and CEO of the company, have been frozen in a case of money laundering.
The ED alleged that Nandakumar laundered money by illegally collecting deposits from the public through his proprietary firm, Manappuram Agro Farms (MAGRO), without approval from the Reserve Bank of India (RBI).
The ED claims that the funds were invested in immovable properties in Nandakumar's name, his spouse's name, and his children's names, as well as shares in Manappuram Finance Ltd.
ED also claimed that during the searches, incriminating documents and property documents for 60 immovable properties were seized, along with deposits held in eight bank accounts and listed shares.
The ED also alleged that Nandakumar and his employees illegally collected deposits, totalling Rs 143 crore, from various branch offices of Manappuram Finance Ltd, and that when the RBI directed them to return the money to the depositors, the accused responded by claiming that they had returned the money in cash.
However, the ED investigation found no proof of repayment or know-your-customer (KYC) documentation. The investigation is also looking into the role of the chief finance officer (CFO) and other employees suspected of assisting in the offence of money laundering.
In response to the allegations, V P Nandakumar has issued a statement denying any involvement in the matter. He claims that the ED's visit to the premises of the company was based on a malafide FIR filed by a person who harbours a personal grudge against him and his family. He also clarified that the case pertains to a now-defunct entity- Manappuram Agro Farms (Magro).
He also clarified that the total value of shares attached by ED is worth approximately Rs 2,000 crore, not around Rs 140 crore as stated.