KOCHI: A Chennai-based businessman who had levelled allegations against CPM leaders, including state secretary M V Govindan and his son, was arrested on Friday for allegedly swindling Rs 40 lakh from two persons in Kochi. The Ernakulam South police arrested Muhammad Sharshad, 48, a resident of Nungambakkam, from Chennai.
According to the complaint, Sharshad, the director of Penda Pvt Ltd, solicited investments from two Kochi residents, luring them with the promise of returns through profit sharing, coupled with an attractive offer of shareholding in the company.
Saravan, a Tamil Nadu native who is the CEO of the company, is also an accused in the case.
“He took Rs 30 lakh from a Kadavanthra resident and another `10 lakh from an Elamkulam resident, promising 24% annual returns by investing in his company. He also promised them a 5 per cent stake in the firm. However, the money was never returned to them,” the police said.
The cops registered a case following a court direction after the complainants moved the court seeking an investigation.
“Sharshad is being brought to Kochi and will be produced before the court on Saturday,” said a police officer.
Sharshad had earlier levelled serious corruption allegations against prominent CPM leaders in Kerala. He gave a letter to the CPM politburo, alleging that a UK-based businessman was the benami of party leaders.
He also accused Govindan’s son of leaking his complaint given to the party. Several leaders, including Govindan and T M Thomas Isaac served legal notices against him.