KOCHI: The Enforcement Directorate (ED) has found Kerala-based Popular Front of India (PFI) leaders manipulated and hid financial records for laundering crores of rupees in liquid cash for funding radical activities. The ED’s findings were revealed in a report filed before the Special Court (PMLA) in Lucknow opposing the bail plea of the two accused, Abdul Razzak Peediyakkal of Malappuram and Ashraf M K of Muvattupuzha.
As per the report, in possession of TNIE, Abdul Razzak was the largest shareholder of Munnar Villa Vista Project (MVVP), which was set up with a motive to launder money collected from abroad and within the country. The ED unearthed records of money laundering when a team on December 8, 2021 raided the MVVP project site and residence of Abdul Razzak. The investigation found several discrepancies on receipt of suspicious foreign funds from abroad and also in cash expenses incurred and recorded in books of accounts. “Income arising out of construction and sale of villas has been shown as income from capital gains instead of income from business and profession, thereby seeking undue exemptions under Sections 48 and 54 of the Income Tax Act,” the probe said.
Immediately after ED started the probe into MVVP, Razzak resigned from the post of divisional president of the PFI unit of Perumbadappu, Malappuram, which was a deliberate attempt to disassociate himself from the front.
“His modus operandi was to first remit funds from his foreign bank accounts to his Indian bank accounts and, thereafter, transfer funds to deliberately conceal their identity as foreign funds. He had a sizeable business in India as well as Gulf countries. He also didn’t declare his foreign assets, interests and transactions in his income tax returns. He also didn’t reveal his business interests in other countries like Qatar, Malaysia and Switzerland,” the ED said.
On the role of Ashraf, the ED said his son and family were all shareholders in MVVP and a diary seized during a raid on his residence on December 8, 2021 contained numerous references to Qatar, Malaysia and Switzerland, apart from substantial amount of money mentioned against the names of these countries. Ashraf has been a member of PFI for the last 15 years and held the position of member of PFI Kerala state executive council.
As per the probe details, though he held a licence for running Darbar Restaurant in his name in Abu Dhabi, he deliberately did not disclose this in his ITR to hide the details and during interrogation, he claimed that an annual licence fee of 5,000 dirhams for the restaurant was paid to sponsor Md Hassan by someone else. “He did not disclose the account No. 022301507220 held at ICICI Bank jointly maintained by him and his wife in which Rs 48 lakh had been received from overseas sources over five years. He could not produce any satisfactory and relevant details for the source of additional cash expenses to the tune of Rs 80 lakh spent in cash by MVVP. He has shareholding to the tune of several lakhs and crores of rupees in various companies in India which he did not reveal in the ITR.
Though there was a transfer of 22,000 shares valued at Rs 22 Lakh in Tamar India Spices Pvt Ltd (TISPL) in 2017-18 in his name and 15,000 shares valued at Rs 15 lakh in his wife’s name, it was found that no corresponding consideration amount was involved.
“Ashraf was one of the most important persons behind MVVP in which he along with his wife and son held substantial shares. Documents, emails and bank statements of Ashraf, Muhammed Abdul Khadar, MVVPL, TISPL, Darbar Restaurant, Rehab India Foundation and others retrieved from the mobile phone and residential premises proved that that accused had bene involved in money laundering.” ED said.