KOCHI: The state government on Wednesday submitted before the High Court that Manjeshwar MLA MC Kamaruddin was the mastermind behind the jewellery fraud. When the petition filed by the MLA seeking to quash the FIR against him came up for hearing, senior government pleader C S Hrithwik submitted that the accused used his political clout and goodwill to lure victims into his companies.
New offences under the Kerala Protection of Interests of Depositors in Financial Establishments Act and Banning of Unregulated Deposit Schemes Act were also incorporated in the case. The modus operandi of the crime is similar to the Popular Finance fraud that took place recently. The state argued that those who invested money in the company were not issued any share certificate. Nor are their names seen anywhere in the unsecured loans provided to the company. These factors complete the ingredients of cheating.
The fact was that the paid-up capital belonged to the shareholders and directors and the money of the complainant and others seem to have been diverted as salary, charges and other revenue expenses of the company. Sainul Abideen, general manager of the company, had stated before the police that `8 crore was invested by way of an agreement by the company’s top brass, including Pookoya Thangal, Kamaruddin and Sainudheen, in a property in Bengaluru to make quick personal gains.
Meanwhile, the Hosdurg Judicial Magistrate First Class (I) gave the Special Investigation Team (SIT) the permission Kamaruddin in 22 more cases related to the Fashion Gold deposit scam. The court, however, did not extend his police custody as sought by the SIT. Kamaruddin was arrested on November 7 and sent to judicial custody for 14 days. On November 9, the court gave his custody to the police for two days.
Court to decide on MLA’s bail plea today
Kanhangad: Manjeshwar MLA M C Kamaruddin, in custody for the past five days, moved a bail plea in Hosdurg Judicial Magistrate First Class (I) arguing that the police fabricated charges against him to tarnish his image. Appearing for Kamaruddin, senior criminal lawyer C K Sreedharan said that the police were falsely implicating the MLA. He also produced before court several past cases where persons charged with Section 420 of the IPC was given bail and anticipatory bail.
The MLA, who runs four gold jewellery companies, raised money from the public promising assured and fixed returns. The companies, which were selling jewellery under the brand name Fashion Gold, started folding up in October 2019 and failed to return the initial deposit as promised or pay the depositors the assured dividends. Around 115 persons filed complaints against the MLA accusing him of cheating (Section 420 of the IPC). The SIT charged Kamaruddin with criminal breach of trust (section 406 of the IPC) The court will decide on the bail on Thursday.