Enforcement Directorate Detains Ex-IUML Legislator and Partner in PMLA Investigation

Kozhikode, April 9 (NationPress) The Enforcement Directorate (ED) in Kozhikode has detained M.C. Kamaruddin, a former legislator of the Indian Union Muslim League (IUML), along with his business partner T.K. Pookoya Thangal, as part of an ongoing money laundering investigation tied to the Fashion Gold deposit fraud.

The agency disclosed the arrests on Wednesday, noting that Kamaruddin serves as the chairman while Pookoya Thangal holds the position of managing director at the Fashion Gold Group Companies.

The IUML stands as the second largest ally in the Congress-led UDF coalition in Kerala. Kamaruddin secured his position as a legislator for Manjeswaram in the Kasargod district via a by-election in 2019, following the passing of the sitting legislator.

After the case was uncovered in 2020, Kamaruddin was compelled to resign from his role as the chairman of the UDF in Kasargod, shortly after being arrested by the Kerala Police for deceiving depositors.

This recent arrest is a continuation of the investigation initiated by the ED, which has now taken over the case. Both individuals were presented before a local court, which permitted the ED to hold them for an additional two days.

The ED's inquiry stemmed from 168 FIRs filed across various police stations in the Kannur and Kasargod districts of Kerala, implicating the Fashion Gold companies, M.C. Kamaruddin, T.K. Pookoya Thangal, and others.

The Crime Branch in Kannur and Kasargod later assumed control of the investigation, resulting in the filing of charge sheets.

Investigations have disclosed that the accused company and its directors amassed significant deposits from the public with the fraudulent intent to deceive investors by promising lucrative returns.

It was also revealed that the accused siphoned off a staggering sum of Rs 20 crore.

In an official statement, the ED indicated that the Fashion Gold companies lacked authorization to solicit deposits from the public. They allegedly crafted a scheme to receive funds under the pretense of investments in share capital or advances from the company's directors and shareholders.

To facilitate this, investors, primarily NRIs, were made directors or shareholders in the company. The accused utilized the funds gathered by the Fashion Gold Company to acquire real estate in their personal names, later selling or transferring these assets to misappropriate the proceeds,” the ED noted.

The ED also highlighted that it had previously attached properties worth Rs 19.62 crore linked to M.C. Kamaruddin, T.K. Pookoya Thangal, and others under the PMLA of 2002, a decision that has been ratified by the ED's Adjudicating Authority in New Delhi.