ED raids promoters of "Kannur Urban Nidhi" over alleged fraud
Jan 31, 2024
Thiruvananthapuram (Kerala) [India], January 31 : The Directorate of Enforcement (ED) conducted search operations on Monday (January 29) at the residential premises of Antony Sunny P, Shoukathali MM, Gafoor KM, and Jaseena MJ in Thrissur and Malappuram districts of Kerala, in connection with an ongoing investigation into a money laundering case for fraud that occurred in Kannur Urban Nidhi.
"The Directorate of Enforcement (ED) conducted search operations on 29/01/2024 at the residential premises of Antony Sunny P, Shoukathali MM, Gafoor KM, Jaseena MJ (Promoter Directors of M/s Kannur Urban Nidhi) in Thrissur and Malappuram districts of Kerala, in connection with an ongoing investigation in a money laundering case for fraud that occurred in M/s Kannur Urban Nidhi (KUN)," as per a press release from the Directorate of Enforcement.
ED initiated an investigation on the basis of various FIRs registered by Kannur Police against M/s Kannur Urban Nidhi, its Directors and promoters.
The company propagated its deposit schemes at Kannur and neighbouring districts through visual media and other advertising methods. The company offered 12 per cent to 12.5 per cent interest for fixed deposits, attracting investors from various districts to invest in the deposit schemes of M/s KUN.
"Further, a new company by the name of M/s Any Time Money Pvt. Ltd (ATM) was incorporated by the promoters of M/s KUN. The company was incorporated with the objective of conducting IT enabled business like wallet business, Digi next banking, mobile ATM services, domestic money transfers, etc," the release stated.
For setting up this company, the accused persons transferred a huge amount of funds from M/s KUN. These funds were further transferred to the bank accounts of the accused persons and utilised by them for their business and personal expenses, which resulted in the non-payment of their dues to the investors.
"During the course of the search operations, various incriminating documents and copies of property documents were seized and the bank accounts of firms associated with the accused persons were frozen," as per the release.
Further investigation is in progress, an official said.
