ED Raids in Kerala Uncover Major Money Laundering Scheme

The ED's Kozhikode Sub-Zonal Office conducted raids at three locations in Kerala, uncovering Rs 3.50 lakh and crucial documents linked to a case of illegal funds routing involving United Bank Limited in Qatar. The investigation targets Ismail Chakkarath, suspected of misusing a substantial loan.

The Kozhikode Sub-Zonal Office of the Directorate of Enforcement (ED) carried out search operations at three locations in Kerala on August 28, seizing Rs 3.50 lakh and various incriminating documents. These searches were part of an investigation into a case of routing illegal proceeds generated by defrauding United Bank Limited in Doha, Qatar.

According to a press release, the raids were conducted under the provisions of the Prevention of Money Laundering Act (PMLA) at the residential premises of individuals connected to Ismail Chakkarath, the prime suspect in this case. The investigation began following an FIR registered by the Crime Branch of the Economic Offences Wing of Kannur and Kasargod units, alleging that Chakkarath took out a loan worth QAR 30,643,204 (approximately Rs. 61.28 crores) to expand his firm M/S Grant Mart Trading in Doha but failed to repay the loan or expand the business.

Further ED investigations revealed that the loan obtained in Qatar was diverted and invested under a benami name in Wayanad, Kerala. Funds amounting to Rs 2.02 crore were used to purchase immovable property, which ultimately fell through. Despite this, the supposed seller retained the Proceeds of Crime (POC) without returning them. The raids also led to the freezing of 10 bank accounts related to Chakkarath, where parts of the POC had been diverted. The investigation is ongoing. (ANI)

(With inputs from agencies.)