ED grills two in alleged investor fund fraud case

The Enforcement Directorate (ED) on Tuesday (February 24) questioned two persons as part of the probe into the alleged cheating and misappropriation of investor funds by Nedumparambil Credit Syndicate (NCS) and its associated group concerns.

NCS proprietor N.M. Raju and R. Pradeep Kumar, president of Nemom Service Cooperative Bank (NSCB), were interrogated at the agency’s Kochi office.

Evidence related to immovable properties linked to the group had been identified, including high-value acquisitions suspected to be derived from proceeds of the crime, the ED said in a statement. Subsequently, assets and properties worth ₹44.5 crore belonging to the principal accused and associates were frozen under Section 17(1-A) of the Prevention of Money Laundering Act.

NCS Group is being investigated by the ED for allegedly cheating depositors by collecting funds on the promise of high returns. The investigation is based on first information reports registered by the State police at multiple stations, according to the agency.

Mr. Raju had triggered a political controversy after he alleged that Anto Antony, Kerala Congress (M) MP from Pathanamthitta, had borrowed ₹2.5 crore from his firm during the 2019 Lok Sabha elections. He further alleged that Mr. Antony had promised to repay the loan within two months but had not yet honoured it even after nearly seven years.