ED freezes Rs 143-crore assets of Manappuram Finance MD & CEO in money laundering case
New Delhi, May 4: The Enforcement Directorate on Thursday said it has frozen assets worth Rs 143 crore of prominent Kerala-based NBFC Manappuram Finance Ltd's MD and CEO V P Nandakumar after it conducted raids as part of a money laundering investigation.
A total of six premises in Thrissur, where the company is headquartered, were covered during the searches that were launched on Wednesday.
The case pertains to allegations of money laundering through "illegal" collection of deposits from the public, the agency said in a statement.
During the course of searches, the ED said, it was found that the proceeds of crime have been "diverted and invested" by V P Nandakumar into immovable properties in his name, in the name of his spouse and children and into the shares of Manappuram Finance Ltd.
"Hence, ED has freezed the assets of V P Nandakumar under the Prevention of Money Laundering Act (PMLA), totalling Rs 143 crore," it said.
The frozen assets include deposits kept in eight bank accounts, investment in listed shares and shares of Manappuram Finance Limited, the agency said.
Various "incriminating" documents showing money laundering and property documents of 60 immovable properties were also seized during the course of the searches, it said.
It claimed that "evidence" regarding money laundering and large-scale cash transactions in the form of public deposits, done by V P Nandakumar through his proprietary firm Manappuram Agro Farms (MAGRO), without RBI approval, have been recovered.
The deposits were "illegally" collected by Nandakumar at various branch offices of Manappuram Finance Limited, a listed company, through some of its employees, it said.
"The outstanding illegally collected deposits, which are the proceeds of crime, have been detected to be Rs 143 crore. When RBI detected the same and directed to return the amount to the depositors, the accused have responded to RBI that they have returned the money to the depositors but ED investigation revealed that there is no proof of repayment or no KYC of the depositors," the ED alleged.
Deposits of Rs 53 crore are shown to have been returned in cash, but with no proof of repayment or KYC, it said.
The agency said that the role of the chief finance officer (CFO) of Manappuram Finance Limited and other employees, who are suspected to have assisted in the offence of money laundering, are being investigated.
Manappuram Finance Ltd, a non-banking financial company (NBFC), offers a string of products like online gold loan, micro-home finance, forex and money transfer, business loan, secured personal loan among others.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Another North Goa nightclub sealed; Kejriwal says corruption led to fire tragedy
Panaji (PTI): As part of a crackdown against tourist establishments violating laws and safety norms in the aftermath of the Arpora fire tragedy, Goa authorities on Saturday sealed a renowned club at Vagator and revoked the fire department NOC of another club.
Cafe CO2 Goa, located on a cliff overlooking the Arabian Sea at Vagator beach in North Goa, was sealed. The move came two days after Goya Club, also in Vagator, was shut down for alleged violations of rules.
Elsewhere, campaigning for local body polls, AAP leader Arvind Kejriwal said the fire incident at Birch by Romeo Lane nightclub at Arpora, which claimed 25 lives on December 6, happened because the BJP government in the state was corrupt.
An inspection of Cafe CO2 Goa by a state government-appointed team revealed that the establishment, with a seating capacity of 250, did not possess a no-objection certificate (NOC) of the Fire and Emergency Services Department. The club, which sits atop Ozrant Cliff, also did not have structural stability, the team found.
The Fire and Emergency Services on Saturday also revoked the NOC issued to Diaz Pool Club and Bar at Anjuna as the fire extinguishers installed in the establishment were found to be inadequate, said divisional fire officer Shripad Gawas.
A notice was issued to Nitin Wadhwa, the partner of the club, he said in the order.
Campaigning at Chimbel village near Panaji in support of his party's Zilla Panchayat election candidate, Aam Aadmi Party leader Kejriwal said the nightclub fire at Arpora happened because of the "corruption of the Pramod Sawant-led state government."
"Why this fire incident happened? I read in the newspapers that the nightclub had no occupancy certificate, no building licence, no excise licence, no construction licence or trade licence. The entire club was illegal but still it was going on," he said.
"How could it go on? Couldn't Pramod Sawant or anyone else see it? I was told that hafta (bribe) was being paid," the former Delhi chief minister said.
A person can not work without bribing officials in the coastal state, Kejriwal said, alleging that officers, MLAs and even ministers are accepting bribes.
