Former Nilambur legislator and Trinamool Congress leader, P V Anvar, presented himself for interrogation before the Enforcement Directorate (ED) at its zonal office in Kochi on Wednesday. The questioning is part of an ongoing money laundering probe connected to suspected fraudulent loan sanctions by the Kerala Financial Corporation (KFC) dating back to 2015.
ED Investigation Uncovers Procedural Lapses and Benami Links
The federal agency had previously conducted searches at multiple locations associated with Anvar and others in November of last year. According to the ED's findings, statements recorded from KFC officials during these raids revealed significant procedural lapses and a failure to verify prior mortgages. Investigators allege that the same collateral properties were used repeatedly to secure fresh loans.
During the search operations, the ED identified 15 bank accounts held in the names of various individuals, who are suspected to be benamis or proxies. These accounts were allegedly used for conducting suspicious transactions related to the case.
Details of the Alleged Loan Fraud and Fund Diversion
The ED's investigation originated from loans sanctioned by KFC to specific companies. The agency states that Malamkulam Constructions received a loan of Rs 7.5 crore. Furthermore, Pee Vee Aar Developers was sanctioned two loans of Rs 3.05 crore and Rs 1.56 crore. Crucially, all these loans were approved against the same collateral properties within a short period.
This series of transactions resulted in the loans turning into non-performing assets (NPAs), causing an estimated total loss of approximately Rs 22.3 crore to the Kerala Financial Corporation. Preliminary evidence gathered by the ED indicates a deliberate diversion of the sanctioned funds for purposes other than those stated in the loan applications.
Anvar's Alleged Admission and Role
As per the Enforcement Directorate, P V Anvar admitted to being the real beneficial owner of Malamkulam Constructions. This is despite the company being formally registered in the names of his nephews and his personal driver. The agency claims this setup was a front to conceal true ownership.
The ED further alleges that Anvar confirmed the loan amounts were utilized for a real estate project named 'Pee Vee Aar Metro Village'. Evidence collected suggests a complex web of fund transfers between related entities, with the money ultimately being used for activities unrelated to the sanctioned loan purposes. The probe also points to the use of nominal shareholders and directors, alongside suspected benami ownership of assets acquired with the loan proceeds.
The case underscores ongoing scrutiny into financial irregularities and the alleged use of shell companies and benami holdings to siphon off funds from state-run financial institutions.
