Kozhikode ED Finds Rs 3.50 Lakh in Search Linked to Ismail Chakkarath’s Loan Fraud
The Kozhikode Sub-Zonal Office of the Directorate of Enforcement (ED) conducted search operations at three locations in Kerala on August 28. They found Rs 3.50 lakh and various incriminating documents related to a case of routing illegal proceeds generated by duping United Bank Limited in Doha, Qatar.
According to a press release, the searches were conducted under the Prevention of Money Laundering Act (PMLA) at the homes of individuals associated with Ismail Chakkarath, the main suspect. The investigation began based on an FIR by the Crime Branch of the Economic Offences Wing of Kannur and Kasargod units.
Ismail Chakkarath, a resident of Thuvakkunnu, Kannur city in Kerala, allegedly took a loan of QAR 30,643,204 (Rs. 61.28 crores) from United Bank Limited to expand his firm, M/S Grant Mart Trading, in Doha. However, he neither repaid the loan nor used it for business expansion. Instead, the loan was diverted and invested under a benami name in Wayanad, Kerala.
Funds amounting to Rs 2.02 crore were diverted for purchasing an immovable property, which did not materialize. The seller kept the money without returning it. The searches led to the freezing of 10 bank accounts of Ismail Chakkarath and related entities, where part of the illegal proceeds was found. Further investigation is ongoing.
Doubts Revealed
Kozhikode -: Kozhikode is a city in the Indian state of Kerala. It is also known as Calicut.
ED -: ED stands for the Directorate of Enforcement. It is a government agency in India that investigates financial crimes like money laundering.
Rs 3.50 Lakh -: Rs 3.50 Lakh means 350,000 Indian Rupees. It is a way to count money in India.
Ismail Chakkarath -: Ismail Chakkarath is a person who is being investigated for taking a big loan and not using it properly.
Loan Fraud -: Loan fraud means taking a loan and not using the money for the purpose it was meant for, or not paying it back.
Kerala -: Kerala is a state in the southern part of India. It is known for its beautiful backwaters and greenery.
United Bank Limited -: United Bank Limited is a bank that operates in many countries, including Qatar. It gives loans and other financial services.
Doha, Qatar -: Doha is the capital city of Qatar, a country in the Middle East.
Prevention of Money Laundering Act (PMLA) -: The Prevention of Money Laundering Act is a law in India that helps to stop money laundering, which is hiding where money really comes from.
