ED searches 11 locations in Tamil Nadu and Kerala over cooperative society probe
The Enforcement Directorate has carried out searches at 11 locations across Tamil Nadu and Kerala as part of a money laundering investigation involving Bharath Lajhna Multi State Cooperative Society (BLM) and its founder, R Premkumar.
The searches were conducted by the agency’s Kochi office under the Prevention of Money Laundering Act.
Investigators suspect that Premkumar diverted funds collected from depositors into accounts belonging to his wife and relatives for personal purposes.
The ED has also alleged that the society’s Ragam Theatre was pledged without the proceeds being credited to the institution. The agency further claims that around 500 acres of land in Kancheepuram were acquired in the name of Premkumar’s wife.
The investigation follows Premkumar’s arrest by Kerala Police on October 29.
BLM has denied wrongdoing, maintaining that it has consistently provided returns to its members and depositors over the past two decades.
In a statement, the society questioned the legality of Premkumar’s arrest, referring to a magistrate’s order, and alleged that authorities were attempting to damage the reputation of the institution and its founder.
The organisation also maintained that its annual accounts had been audited, approved at general body meetings and submitted to the Central Registrar of Cooperative Societies. The allegations remain under investigation.