Major Arrests in Money Laundering Case: ED Nabs Top Brass of Fashion Gold Group in Kerala
(Judicial Quest News Network)
Kerala 9, April,2025. In a noteworthy development, the Directorate of Enforcement (ED) has arrested M.C. Kamaruddin, Chairman, and T.K. Pookoya Thangal, Managing Director of M/s Fashion Gold Group Companies, on 07th April 2025. The arrests were made in connection with a high-profile money laundering case involving the company and its affiliates. Both individuals were presented before the Hon’ble Special Court (PMLA) in Kozhikode on 8th April 2025, where they were granted a two-day custody by the court to aid in further investigation.
The ED’s action follows the registration of 168 FIRs across various police stations in the Kannur and Kasaragod districts of Kerala. These complaints were filed against the Fashion Gold companies, along with Kamaruddin, Pookoya Thangal, and other associates, based on allegations of widespread fraudulent activities involving public deposits. Subsequent investigations by the Crime Branch of Kannur and Kasaragod led to charges being filed against the accused individuals.
The findings of the investigation paint a damning picture of financial misconduct. According to ED officials, the Fashion Gold companies collected large sums of money from the public under false pretences, promising high returns to investors. However, it was uncovered that the company’s directors and associates had a dishonest intention of cheating these investors. It is estimated that approximately Rs 20 Crore was siphoned off by the accused parties during the scheme.
The investigation revealed that the Fashion Gold companies, despite lacking the necessary authorization to accept deposits from the public, concocted a scheme to bypass regulations. They offered investors the opportunity to “invest” in share capital and advance payments to the company. In many cases, investors, mostly non-resident Indians (NRIs), were made Directors or Shareholders in the company as part of this elaborate ruse. In return, the accused individuals used the funds collected from these unsuspecting investors to purchase immovable properties in their own names. These properties were later sold off, and the funds were illegally diverted for personal gain.
In an earlier move, the ED had already attached immovable properties worth Rs 19.62 Crore that were linked to Kamaruddin, Pookoya Thangal, and other associates under the Prevention of Money Laundering Act (PMLA), 2002. These asset attachments were confirmed by the Ld. Adjudicating Authority, PMLA, New Delhi, as part of the ongoing investigation into the case.
