The Enforcement Directorate (ED) has initiated an inquiry into allegations of money laundering against a couple in Kerala, who stand accused of perpetrating fraud against a foreign bank. The investigative agency has conducted raids at eight locations linked to the suspects, Abdurahiman and Zareena Majeed, situated in Kochi, Kozhikode, and Kasargod within the southern state, in connection with a cross-border bank fraud.
The duo is accused of misappropriating funds obtained through loans for personal gain, prompting the ED's scrutiny. The investigation was instigated based on a First Information Report (FIR) that asserts Abdurahiman fraudulently procured a business loan amounting to Rs 1,54,84,50,475 (equivalent to 68.159 million AED) from Invest Bank in Sharjah, UAE. The FIR, filed by an authorized representative of the foreign bank, alleges that the accused defaulted on a substantial outstanding amount of about Rs 83.36 crore (42.898 million AED).
The ED's inquiry unveiled that Abdurahiman availed loans totaling approximately Rs. 340 crore (approximately 150 million AED) from various banks, including the aforementioned UAE-based institution. The funds were allegedly redirected through debit entries to multiple entities and withdrawn in cash. Consequently, the Enforcement Directorate has taken action by freezing assets amounting to Rs 3.58 crore, encompassing the accused's bank balance and held shares, according to Section 17(1-A) of the Prevention of Money Laundering Act (PMLA).
It has come to light that Abdurahiman may have channeled cash withdrawals through hawala channels and invested the diverted funds in diverse companies operating in construction, media, chemical industry, and information technology. The freezing of assets is a preventive measure to curb further misuse of the funds and safeguard the interests of those affected.
This ongoing investigation underscores the multifaceted nature of financial impropriety, involving not only the alleged fraud against the foreign bank but also the subsequent diversion and utilization of funds across various sectors. As the inquiry progresses, the Enforcement Directorate aims to delve deeper into the intricate details of this suspected money laundering operation.
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