Kerala: ED raids in Kannur Urban Nidhi 'fraud' case

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Enforcement Directorate ED raids

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Thiruvananthapuram: The Enforcement Directorate on Monday raided multiple locations in Kerala as part of a money laundering probe linked to an alleged multi-crore fraud by the Kannur Urban Nidhi Limited, official sources said.


About four-five premises in Thrissur and Malappuram are being searched by the central agency, the sources said.

The probe pertains to an alleged case of fraud and cheating the public by collecting deposits promising high returns of as much as 12-13 per cent.

The promoters of the Kannur Urban Nidhi Ltd. are alleged to have siphoned off the deposits and invested these funds into personal properties, the sources said.

The ED case, filed under the provisions of the Prevention of Money Laundering Act (PMLA), was registered after the agency took cognisance of as many as 150 Kerala Police and economic offences wing (EOW) FIRs against the promoters and directors including Gafur KM, Shaukat Ali, Anthony S and a woman identified as Jasheena (currently lodged in jail).

About Rs 20 crore worth of public funds were allegedly defrauded and the ED is trying to ascertain the full scope of the fraud, the sources said.