Enforcement Directorate raids Manappuram Finance offices in Kerala
The Enforcement Directorate (ED) today raided the headquarters and offices of Manappuram Finance in Kerala in connection with an alleged money laundering case against the non-banking financial company, reports said.
According to reports quoting official sources, the ED conducted raids at four offices of Manappuram Finance across Kerala, including its headquarters in Thrissur and the home and office of its promoter VP Nandakumar.
They said the raids are part of the central probe agency’s investigation against the financial company for allegedly contravening Reserve Bank of India (RBI) guidelines and collecting public deposits worth over Rs 150 crore, adding that ED—which probes financial crimes—is investigating Manappuram Finance for alleged money laundering and the searches were undertaken to gather evidence in the purported case.
The sources claimed that the ED is looking at gathering documents and recording statements of the company executives in connection with its suspicion that the company has made ‘large-scale’ cash transactions by violating KYC regulation set by the RBI, as per reports.
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They said that the financial crimes’ probe agency is investigating Manappuram Finance for money laundering but it unclear yet if a case has been filed in this regard by the ED.
A response from Manappuram Finance wasn’t available when this report was filed.
Meanwhile, the shares of the non-banking financial company slumped by 10 percent as the news of the ED raids at its premises broke.
Mannapuram Finance, a non-banking financial company with a significant foothold in South India, has been providing a myriad of financial services for the past over thirty years and some of its services including gold loans, housing loans, microfinance, among others.
The company had recently announced that it was considering various options for raising funds through borrowings, including issuing debt securities on onshore and offshore securities markets by public issue, private placement, or through commercial papers.
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