Kochi: The Enforcement Directorate (ED) conducted searches at 10 premises across Kerala and Tamil Nadu and froze assets and properties worth Rs 44.5 crore in connection with an investment fraud case, an official said on Friday.
The action was undertaken in connection with the investigation into the alleged cheating and misappropriation of investor funds by Nedumparambil Credit Syndicate (NCS), Kerala, and its associated group concerns controlled by Raju George and his family members, the official said in a statement.
The Directorate of Enforcement, Kochi Zonal Office, conducted the search operations on Thursday under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation originates from multiple FIRs registered by Kerala Police at Pulikeezhu Police Station in Pathanamthitta and Muvattupuzha Police Station in Ernakulam against key persons of the NCS Group for scheduled offences, including cheating under Section 420 of the IPC, 1860, the ED said.
On the basis of these predicate offences, an Enforcement Case Information Report (ECIR) was recorded on July 1, 2024, and a financial investigation under the PMLA was initiated, it added.
A preliminary enquiry revealed mobilisation of public deposits on the promise of high returns, followed by diversion, layering and utilisation of the proceeds of crime through intra-group fund transfers, transactions with outside entities, acquisition of movable and immovable assets, and other financial activities, the ED said.
Evidence gathered during the searches indicated a nexus between the NCS Group and related concerns, reflecting extensive real estate acquisitions, cash-linked dealings, investments in financial instruments and gold loan transactions connected with the accused.
During the course of the search proceedings, incriminating documents, digital devices and financial records were recovered and seized.
Evidence relating to immovable properties linked to the group has been identified, including high-value acquisitions suspected to be derived from proceeds of crime.
To prevent concealment or dissipation of such assets, properties of the principal accused and associates to the tune of Rs 44.5 crore were frozen under Section 17(1-A) of the PMLA.
“The seized material is under detailed examination to trace the complete proceeds of crime, quantify diversion of funds and assets, identify beneficiaries, and establish the offence of money laundering under the PMLA,” the ED said.
(IANS)
