ED freezes ₹103 crore in Kerala housing society fraud linked to R. Premkumar
Synopsis
The ED has frozen ₹103 crore in assets — Rolls-Royce, Porsche, 7.4 kg of gold, and ₹80 crore in shares — tied to Kerala housing society founder R. Premkumar, who was arrested and then released on bail. The agency now suspects the actual diversion of depositor funds is far larger than the ₹80 crore flagged in the original police FIR.
Key Takeaways
The ED froze assets worth ₹103 crore linked to BLMSHCS and its founder R.
Premkumar on 5 November 2026 .
Seized assets include 8 luxury cars (₹7 crore) , 7.4 kg gold jewellery (₹9.6 crore) , shares worth ₹80 crore , and immovable properties worth ₹5 crore .
Searches were carried out at 12 premises in Kerala and Chennai under the PMLA .
Around 320 bank accounts linked to the society and its founder are under scrutiny.
Premkumar was arrested on 29 October 2026 but was released on bail due to procedural lapses.
The ED suspects the actual fraud exceeds the initial ₹80 crore estimate cited in the police FIR.
The Enforcement Directorate (ED) has seized and frozen assets worth ₹103 crore in connection with an alleged large-scale financial fraud involving Bharath Lajhna Multi State Housing Co-operative Society Ltd (BLMSHCS) and its founder, R. Premkumar, ED officials confirmed on Thursday, 5 November 2026. The action follows searches across 12 premises in Kerala and Chennai conducted on Wednesday by the agency's Kochi Zonal Office under the Prevention of Money Laundering Act (PMLA).
What Was Seized
The frozen assets span multiple categories. Eight luxury cars — including a Porsche, a Rolls-Royce, a Toyota Vellfire, and a Mercedes-Benz — are valued at approximately ₹7 crore. Investigators also recovered gold jewellery weighing 7.4 kg, estimated at ₹9.6 crore, along with shares worth ₹80 crore, immovable properties worth ₹5 crore, and bank balances of ₹1.86 crore.
Nature of the Alleged Fraud
According to the ED, the case centres on the alleged misappropriation of public deposits collected by the society and their diversion to acquire personal and family assets. The agency has been examining around 320 bank accounts linked to BLMSHCS and Premkumar, and suspects that depositor funds were routed through these accounts to acquire assets in the names of Premkumar's family members and entities linked to them. Investigators are also reportedly examining allegations that society properties were mortgaged and the funds raised were subsequently misused.
Scope of the Investigation
The initial estimate of suspected proceeds of crime stood at around ₹80 crore, based on the police First Information Report (FIR). However, the ED has indicated that its ongoing investigation suggests the alleged diversion could involve significantly larger sums. Several cases have been registered in connection with the alleged fraud, including under the Bharatiya Nyaya Sanhita (BNS). This comes amid an ongoing probe by the Kerala Crime Branch and state police, underscoring the multi-agency dimension of the case.
Premkumar's Arrest and Release
R. Premkumar was arrested by the Kerala Police Crime Branch on 29 October 2026. He was, however, subsequently released on bail following what authorities described as procedural lapses in the arrest process. The ED's parallel investigation under PMLA remains active, and further action is not ruled out as the probe widens. The case is shaping up as one of the larger cooperative society fraud investigations in Kerala in recent years, with depositors' losses potentially exceeding the initial FIR estimates.
Point of View
Make an arrest, and then procedural lapses allow bail — at which point the central agency steps in under PMLA with far broader asset-tracing powers. The gap between the ₹80 crore FIR estimate and what the ED is now finding in 320 bank accounts suggests depositor losses could be substantially higher than currently acknowledged. Kerala has seen a string of cooperative and chit-fund fraud cases in recent years; the political sensitivity around cooperative societies in the state means how aggressively this prosecution moves forward bears watching. For depositors, the freeze is cold comfort until a recovery and distribution mechanism is established.
NationPress
6 Nov 2026
Frequently Asked Questions
What is the BLMSHCS housing society fraud case?
The Bharath Lajhna Multi State Housing Co-operative Society Ltd (BLMSHCS) fraud involves the alleged misappropriation of public deposits collected from investors and their diversion to acquire personal and family assets. The ED suspects that society founder R. Premkumar routed depositor funds through around 320 bank accounts to build a portfolio of luxury cars, gold, shares, and properties.
What assets has the ED seized in this case?
The ED has seized and frozen assets totalling ₹103 crore, comprising eight luxury cars worth ₹7 crore (including a Rolls-Royce and Porsche), gold jewellery of 7.4 kg valued at ₹9.6 crore, shares worth ₹80 crore, immovable properties worth ₹5 crore, and bank balances of ₹1.86 crore.
Has R. Premkumar been arrested?
Yes. R. Premkumar was arrested by the Kerala Police Crime Branch on 29 October 2026, but was subsequently released on bail following procedural lapses in the arrest. The ED's separate investigation under PMLA remains active.
How large is the alleged fraud?
The initial police FIR estimated the proceeds of crime at around ₹80 crore. However, the ED has stated that its investigation indicates the alleged diversion of depositor funds could involve significantly larger sums, and the probe is ongoing.
Which agencies are investigating the case?
Both the Kerala Police Crime Branch and the Enforcement Directorate are probing the case. The ED's Kochi Zonal Office is handling the PMLA angle, while state police have registered multiple cases including under the Bharatiya Nyaya Sanhita.
