KOZHIKODE: Directorate of Enforcement (ED), Kozhikode, arrested former MLA and IUML leader M C Kamaruddin, who was the chairman of Fashion Gold Group companies, and MD T K Pookoya Thangal, on April 7 in connection with a money- laundering case registered against M/s Fashion Gold and others under the provisions of Prevention of Money Laundering Act (PMLA), 2002. They were produced before the Special Court (PMLA), Kozhikode, on April 8, said a press release from the central agency. The court has sent them to two days’ ED custody.
ED initiated an investigation on the basis of 168 FIRs registered at various police stations in Kannur and Kasaragod districts against Fashion Gold companies, Kamaruddin, Pookoya Thangal and others.
The crime branch took over the investigation and filed chargesheets, the release added. The investigation has revealed that the accused company and its directors collected huge deposits from the public with dishonest intention of cheating the investors by offering attractive returns. The investigation further revealed that a total amount of Rs 20 crore was siphoned off by the accused persons.
ED investigation revealed that the Fashion Gold companies were not authorised to accept deposits from public and therefore they devised a plan to receive deposits from public in the guise of investment in share capital/advances from directors and shareholders of the company.
For this purpose, the investors, mostly NRIs, were made directors/shareholders in the company. The accused persons purchased immovable properties in their individual names out of the funds collected by the Fashion Gold Company and subsequently disposed of/transferred those properties and siphoned off funds, ED said in the press release.
Rs 20-CRORE FRAUD
Kamaruddin, who was the chairman of Fashion Gold Group companies, and MD T K Pookoya Thangal were arrested on April 7 in connection with a money- laundering case against M/s Fashion Gold and others
The investigation revealed that the accused company and its directors collected huge deposits from the public by offering attractive returns
A total amount of Rs 20 crore was siphoned off by the accused persons