ED arrests three from Kerala in Kannur Urban Nidhi fraud case

New Delhi, December 2

Directorate of Enforcement (ED), Kozhikode arrested Antony Sunny, Shoukkathali M M and Gafoor K M in connection with an ongoing investigation in a money laundering case of fraud occurred in Kannur Urban Nidhi (KUN).

During the course of investigation, it has been ascertained that Antony Sunny, Shoukkathali M M and Gafoor K M were the promoters of KUN. The company propagated various deposit schemes at Kannur and neighbouring districts with offering interest of 12% to 12.5% on deposits. The accused persons along with their associates cheated the various investors on pretext of giving them higher returns thereby embezzling around Rs.40 Crore which is identified as Proceeds of Crime (POC) during investigation. 

The accused persons in the instant case with intention to cheat investors, collected funds through KUN for their personal use. The funds collected from investors in KUN were utilized for establishing and running of Anytime Money Pvt. Ltd. The guidelines of Nidhi company were not intentionally followed in KUN. 

The company KUN was incorporated to have easy access of funds for establishment of another company as the accused persons could not get loans from the bank. Further, funds were also transferred to the personal bank accounts of Antony Sunny, Shoukkathali M M, Gafoor K M and firms/companies associated with Antony Sunny and Gafoor K M from where the funds were utilized towards their personal/business expenses, payment of loan installments etc.
 

The searches were earlier conducted at the residences and office premises of accused persons wherein incriminating documents were seized and bank accounts were freezed.

By acquiring, possessing and siphoning of the POC Antony Sunny, Shoukkathali M M and Gafoor K M have committed the offence of Money Laundering as defined u/s 3 of PMLA, 2002 punishable under section 4 of the act, officials further added.