Digital Desk |
Kochi, Nov 5 (IANS) The Enforcement Directorate (ED) has seized and frozen assets worth Rs 103 crore in connection with an alleged massive financial fraud involving Bharath Lajhna Multi State Housing Co-operative Society Ltd (BLMSHCS) and its founder R. Premkumar, ED officials said on Thursday.
The action followed searches at 12 premises in Kerala and Chennai on Wednesday.
The searches were conducted by the ED’s Kochi Zonal Office under the Prevention of Money Laundering Act (PMLA).
The ED in a statement issued here on Thursday said the case relates to the alleged misappropriation of public deposits collected by the society and their diversion to acquire personal and family assets.
The seized and frozen assets include eight luxury cars worth around Rs 7 crore, gold jewellery weighing 7.4 kg and valued at Rs 9.6 crore, shares worth Rs 80 crore, immovable properties worth Rs 5 crore and bank balances of Rs 1.86 crore.
The cars include Porsche, Rolls-Royce, Toyota Vellfire and Mercedes-Benz models.
The ED action follows an ongoing probe by the Kerala Crime Branch and the state police.
Several cases have been registered in connection with the alleged fraud, including under the Bharatiya Nyaya Sanhita.
The investigation has focused on around 320 bank accounts linked to the society and its founder.
The central agency suspects that public deposits were routed through these accounts and used to acquire assets in the names of Premkumar’s family members and entities linked to them.
Premkumar was arrested by the Kerala Police Crime Branch on October 29.
However, he was later released on bail following procedural lapses in the arrest.
According to the ED, its investigation has revealed that Premkumar and his associates diverted funds collected from depositors for personal gains.
The central agency is also examining allegations that society properties were mortgaged and the funds raised were misused.
The suspected proceeds of crime were initially estimated at around Rs 80 crore based on the police FIR.
However, the ED said its investigation indicated that the alleged diversion could involve much larger sums.
Further investigation is underway.
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