CHENNAI: The Enforcement Directorate (ED) has seized and frozen assets worth Rs 103 crore, including eight luxury cars, 7.4kg of gold jewellery, shares worth Rs 80 crore and immovable properties, in connection with an alleged money laundering case involving the diversion of public funds of Bharath Lajhna Multi State Housing Co-operative Society Ltd (BLMSHCS).
ED initiated its investigation based on an FIR registered by the Kerala police against Premkumar, a founding member and de facto chairman and managing director of the society and others.
The proceeds of crime were initially estimated at around Rs 80 crore. The ED’s investigation revealed that around 320 bank accounts were operated by Premkumar and his associates to layer funds belonging to the society. The investigation pertains to the alleged misappropriation of public deposits collected by BLMSHCS and their diversion by Premkumar for acquiring assets in his name and those of his family members. The FIR alleged that he misused his influence to divert crores of rupees collected from public depositors into the accounts of family members and relatives for acquiring assets. It also alleged that properties belonging to the society were mortgaged and the loan proceeds used for personal benefit and acquisition of assets in the names of his family members. Analysis of these accounts showed that public deposits had been diverted for personal benefit and to acquire movable and immovable assets in the names of family members and entities controlled by them.
The searches were conducted on Wednesday on premises in Chennai, Ernakulam, Kozhikode, Thrissur, Thiruvananthapuram and Munnar under the Prevention of Money Laundering Act (PMLA).
During the searches, officials found that Premkumar continued to actively control the affairs of the society and had been signing several statutory documents. Further investigation is on.