ED raids locations in Kerala and Tamil Nadu over BLM society case
The Enforcement Directorate searched multiple sites linked to Bharath Lajhna Multi State Co-operative Society regarding alleged money laundering.
The Enforcement Directorate (ED) conducted searches at several locations across Kerala and Tamil Nadu on Wednesday, November 4, regarding an investigation into the Bharath Lajhna Multi State Co-operative Society (BLM). According to reports from The Hindu and Mathrubhumi, the agency targeted sites in cities including Kochi, Kozhikode, and Chennai.
The raids, carried out under the Prevention of Money Laundering Act (PMLA), involve premises linked to R. Premkumar, the founding member and de facto chairman and managing director of BLM. The investigation follows allegations that crores of rupees from public depositors were diverted into the accounts of relatives for personal use.
The Crime Branch has previously investigated the society, reportedly examining 320 bank accounts. A report submitted to the High Court by the Crime Branch's Financial Crimes Investigation Division alleged that funds were used to purchase hotels, resorts, and a cinema theatre in Thrissur, as well as being credited to private companies controlled by the accused.
Mr. Premkumar was arrested in Chennai on October 29 but was later granted bail by a Kozhikode court due to procedural lapses in his arrest. The Crime Branch has since sought permission from the court to re-arrest him.
BLM, which began in Chennai in 2006, has over 15 lakh members and approximately 150 branches across Kerala, Tamil Nadu, and Puducherry. Management of the society has denied allegations of deposit fraud, stating that the society's assets are worth more than its liabilities to depositors.