ED arrests former IUML legislator and business partner in PMLA case

Kozhikode, April 9 (IANS) The Enforcement Directorate (ED), Kozhikode, arrested former Indian Union Muslim League (IUML) legislator M.C. Kamaruddin and his business associate T.K. Pookoya Thangal in connection with a money laundering case linked to the Fashion Gold deposit scam.

The ED informed the media on Wednesday about the arrest of Kamaruddin, chairman and Pookoya Thangal, managing director of Fashion Gold Group Companies.

IUML is the second biggest ally of the Congress-led UDF in Kerala, and Kamaruddin became a legislator from Manjeswaram in Kasargod district through a by-election following the death of the then sitting legislator in 2019.

Following the detection of this case in 2020, he was asked to quit as the chairman of the UDF in Kasargod soon after he was arrested by the Kerala Police in 2020 for cheating depositors.

The present arrest is in continuation of the same case after the ED took over the probe, and the two, after being taken into custody, were produced before a local court, which granted the ED to keep them in custody for two days.

The ED initiated an investigation on the basis of 168 FIRs registered at various Police Stations at Kannur and Kasargod districts of Kerala against Fashion Gold companies, M.C. Kamaruddin, T.K. Pookoyathangal and others.

Further, the Crime Branch, Kannur and Kasargod, took over the investigation and filed charge sheets.

The investigation has revealed that the accused company and its directors collected huge deposits from the public with the dishonest intention of cheating the investors by offering attractive returns.

The investigation has further revealed that a total amount of Rs 20 crore was siphoned off by the accused persons.

In a statement issued by the ED, it said their investigation revealed that the Fashion Gold companies were not authorised to accept deposits from the public and therefore they devised a plan to receive deposits from the 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 the funds,” said the ED statement.

It further pointed out that earlier the ED had attached immovable properties worth Rs 19.62 crore relating to M.C Kamaruddin, T.K Pookoya Thangal and others under PMLA, 2002, and the same has been confirmed by the ED Adjudicating Authority, PMLA, New Delhi.

--IANS

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