ED launches probe against Nedumparambil Credit Syndicate Group in Kerala under PMLA

The Directorate of Enforcement (ED) has initiated an investigation against the promoters and key functionaries of the Nedumparambil Credit Syndicate (NCS) Group under the Prevention of Money Laundering Act (PMLA), 2002 for allegedly cheating depositors by collecting funds on the promise of high returns.

The probe follows multiple FIRs registered by the Kerala Police which invoked charges under Section 420 of the Indian Penal Code (cheating and dishonestly inducing delivery of property, or making, altering, or destroying a valuable security).

Preliminary findings revealed that several depositors across Kerala were persuaded to invest substantial sums, which were neither repaid nor yielded the promised returns. Analysis of bank accounts linked to NCS Group entities indicated large-scale financial transactions, diversion of funds to related entities, and significant cash withdrawals. Investigators also suspect that portions of the funds were invested in immovable properties across the State, according to a statement issued by the agency.

The ED has conducted search operations under Section 17 of the PMLA to secure documents, digital records, and other evidence relevant to tracing the alleged proceeds of crime.

Officials confirmed that further investigation was under way.