Enforcement Directorate freezes Manappuram Finance CEO’s assets worth Rs 143 crore in money laundering case

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The ongoing money laundering investigation has resulted in the Enforcement Directorate (ED) freezing assets worth Rs 143 crore belonging to V P Nandakumar, the Managing Director and CEO of Manappuram Finance. The Kerala-based non-banking financial company (NBFC) has been accused of illegally collecting deposits from the public, leading to the ED conducting raids on six premises in Thrissur where Manappuram Finance is headquartered. During these raids, evidence of alleged financial irregularities was uncovered which revealed that shell companies were used by the company to funnel ill-gotten money towards purchasing properties and other assets. The ED has seized several assets including immovable properties, luxury cars, gold and shares.

Additionally, Nandakumar and other officials of Manappuram Finance have been issued summons by the agency to appear before them for recording their statements. This incident could have far-reaching implications for India’s financial sector which has already been scarred by a series of frauds and scams in recent years. It highlights the need for stronger regulatory oversight and stricter penalties for financial crimes.

Despite this setback, Manappuram Finance maintains that it has not engaged in any wrongdoing and is cooperating with authorities during their investigation. However, investors are concerned as stock prices have taken a hit following news of the asset freeze.