New Delhi: The Directorate of Enforcement (ED) has launched a money laundering investigation against promoters and key functionaries of the Nedumparambil Credit Syndicate (NCS Group) in Kerala for allegedly cheating depositors by collecting funds on the promise of unusually high returns.
The probe has been initiated under the Prevention of Money Laundering Act (PMLA), 2002, following multiple first information reports registered by the Kerala Police. The scheduled offence in the case relates to cheating under Section 420 of the Indian Penal Code.
According to ED officials, preliminary findings suggest that the NCS Group induced a large number of investors across different districts of Kerala to deposit substantial sums of money, assuring them attractive returns. However, the funds were neither repaid nor did the investors receive the promised profits.
An analysis of bank accounts linked to the group revealed extensive financial activity, including large-scale fund transfers, diversion of money to several related entities, and significant cash withdrawals. Investigators suspect that a portion of the collected funds was siphoned off and invested in immovable properties across the state.
Based on material gathered during the initial inquiry, the ED carried out search operations under Section 17 of the PMLA to secure documents, digital devices, and other records relevant to tracing the alleged proceeds of crime.
Officials said further investigation is ongoing to identify the full extent of the financial trail, beneficiaries of the diverted funds, and assets acquired through the alleged fraudulent activities.
