The Enforcement Directorate (ED) conducted searches at 10 premises in Kerala and Tamil Nadu, freezing assets and properties valued at Rs 44.5 crore related to an investment fraud case. The action was taken regarding the alleged cheating and misappropriation of investor funds by the Nedumparambil Credit Syndicate (NCS) and associated group concerns controlled by Raju George and family members.
The searches were carried out by the Directorate of Enforcement, Kochi Zonal Office, under the Prevention of Money Laundering Act (PMLA), 2002. The investigation stemmed from FIRs filed by Kerala Police against key individuals of the NCS Group for offenses including cheating under Section 420 of the IPC, 1860.
An Enforcement Case Information Report (ECIR) was filed on July 1, 2024, based on the predicate offenses, initiating a financial investigation under the PMLA. The probe revealed the mobilization of public deposits with promises of high returns, followed by diversion and utilization of the proceeds of crime through various financial activities.
Evidence collected during the searches indicated a connection between the NCS Group and related concerns, showing significant real estate acquisitions, cash transactions, investments in financial instruments, and gold loan transactions. Incriminating documents, digital devices, and financial records were seized during the search proceedings.
Immovable properties linked to the group, suspected to be derived from proceeds of crime, were identified. To prevent concealment or dissipation of these assets, properties worth Rs 44.5 crore belonging to the principal accused and associates were frozen under the PMLA. The seized material is being examined in detail to trace the complete proceeds of crime and establish offenses of money laundering.
