ED investigation on illegal deposits is linked to erstwhile Manappuram Agro Farms, Manappuram Finance says

Manappuram Finance today said the Enforcement Directorate’s recent investigations into its alleged illegal deposit collection is linked to the money collected by an erstwhile proprietor of promoter’s concern prior to 2012 and the company is now co-operating with the probe body.

“This is mainly with reference to the deposits accepted by Manappuram Agro Farms (MAGRO), an erstwhile sole proprietor of the concern of the promoter, prior to 2012, which were subsequently repaid except of the deposit of Rs 9.25 lakhs which could not be repaid by them despite MAGRO’s continuous efforts,” the company said in an exchange filing.

ED, the central investigation body, on Wednesday conducted searches at multiple premises linked to the non-banking finance company in Kerala in connection with a money laundering investigation. The officials stated the raids are being undertaken to gather evidences related to allegations of collecting public deposits worth over Rs 150 crore by the company in contravention of Reserve Bank of India (RBI) guidelines, reported PTI.

A total of four premises, including the headquarters of the company in Thrissur and those of its promoters are being searched, they said.

The company is co-operating with ED’s investigation team by providing the required details sought by them, it said, adding the NBFC will be able to provide more information on completion of the search.