Probe into case of loan misappropriation by Ex-MLA Anvar reveals financial irregularities: ED
Malappuram(Kerala) (PTI): The Enforcement Directorate (ED) probing the alleged loan misappropriation by former MLA P V Anvar from Kerala Financial Corporation (KFC) said on Saturday that it has unearthed financial irregularities linked to the political leader’s business dealings.
ED has carried out raids on the residences and businesses of Anvar here on Friday.
The ED is probing about the Rs 7.5 crore loan, the KFC had granted to Malamkulam Constructions in 2015.
Later, loans to the tune of Rs 3.05 crore and Rs 1.56 crore were sanctioned to Pee Vee Aar Developers, using the same collateral properties within a short interval, resulting in a total NPA of approximately Rs. 22.3 Crore, a statement from ED said.
As many as 15 bank accounts held in the names of different persons, alleged to be benamis, from which suspected transactions have taken place, were identified, the statement said.
The seized materials are being examined to identify the Proceeds of Crime, quantify the diversion of loan funds, establish the layering mechanism and determine the extent of benami holdings.
According to ED, preliminary evidence indicates diversion of the sanctioned funds, use of nominal shareholders and directors, and suspected benami ownership of assets.
"During the searches, Anvar admitted to being the real beneficial owner of Malamkulam Constructions, despite the company being held in the names of his nephews and driver. He confirmed that loan amounts were used for the large township project Pee Vee Aar (PVR) Metro Village," ED said.
According to ED, the statements of his associates revealed that documents were routinely signed at his instruction, funds were diverted to associated entities, and certain cash collections were handled outside regular accounting channels.
It is also found that certain buildings were constructed in PVR Metro Village by Malamkulam Constructions Pvt Ltd without proper approvals from the local regulatory body, and Proceeds of Crime have been infused in the said construction, ED said.
ED officials said that searches at the premises of Bis Manjeri LLP and PVR Metro Village indicated extensive construction and commercial activity, including schools, amusement parks, resorts, villa projects, and apartment blocks.
“Evidence collected suggests transfer of loan proceeds between related entities and utilisation for purposes unrelated to sanctioned activities. During the searches, various incriminating documents and digital evidence related to sale agreements, financial documents and property papers, multiple records and digital devices, have been seized," ED said.
According to ED, statements of KFC officials recorded during the operation revealed procedural lapses, non-verification of prior mortgages, and re-use of the same collateral for subsequent loans.
"The Technical Officer admitted that valuation reports were reused without fresh inspection, and the legal officer acknowledged that earlier encumbrances went undetected," the statement by ED said.
ED initiated the investigation after the Kerala Vigilance and Anti-Corruption Bureau (VACB) recently registered a corruption case related to loan misappropriation at the KFC Malappuram office.
Last month, the ED recorded the statement of Murugesh Narendran, the complainant in the VACB case.
Anvar, a former MLA from Nilambur, parted ways with the LDF following differences and later contested the Assembly by-election on an All India Trinamool Congress ticket early this year.
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Fresh case registered against activist Snehamayi Krishna
Bengaluru PTI): A fresh FIR has been registered against social activist Snehamayi Krishna for making defamatory statements against a woman.
Basaveshwara Nagar Police Station registered a First Information Report against Krishna on Saturday.
According to the FIR, complainant Pavithra B N (37) alleged that a letter dated December 5 was delivered to her residence, in which Snehamayi Krishna made defamatory allegations regarding the death of her husband and against her advocate, Raghu.
The letter also indicated that a complaint had been submitted to the Mahalakshmipuram Police Station seeking reinvestigation into her husband’s death.
The complainant further alleged that a threatening note was enclosed with the letter, pressuring her to withdraw cases filed against a man named Mylaraappa.
She stated that the mobile number of the person exerting pressure was mentioned in the letter.
Pavithra claimed that the alleged actions had caused severe distress to her family, disrupted her children’s education, created unrest at home and deprived them of peace.
She also accused the persons named in the complaint of using abusive language and issuing life threats.
Police initially registered a non-cognisable report.
After Pavithra obtained permission from the 24th ACMM Court to initiate criminal proceedings, an FIR was formally registered against Snehamayi Krishna and Mylaraappa as per the court’s direction.
Krishna has previously been in the news for lodging complaints and making allegations against Chief Minister Siddaramaiah, his wife Parvathi B M, and others for obtaining Mysuru Urban Development Authority (MUDA) alternative sites (plots) against the rules.
The Lokayukta police which investigated the matter filed a closure report, which the special court of public representatives admitted.
On Thursday, he also levelled accusations against Karnataka Chief Secretary Shalini Rajneesh along with a Karnataka Administrative Services (KAS) officer D B Natesh, the former MUDA Commissioner.
Shalini Rajneesh's office rejected the charges categorically and termed his accusations "defamatory".
On Saturday he apologised for making allegations against the Chief Secretary.
