Enforcement Directorate Intensifies Crackdown on Financial Crimes in Kerala
The Directorate of Enforcement (ED), through its Kochi zonal office, has taken decisive action against financial irregularities by issuing provisional attachment orders for multiple properties across Kerala. These measures come as part of ongoing investigations under the Prevention of Money Laundering Act (PMLA), targeting alleged corruption and fraudulent schemes that have impacted public funds and investor money.
Devaswom Board Corruption Case: Properties Worth ₹40.48 Lakh Attached
In a significant development, the ED has provisionally attached two immovable properties located in Kollam, with a combined value of ₹40.48 lakh. This action, authorized by an order dated February 4 under Section 5(1) of the PMLA, targets properties registered in the names of J Jayaprakash and Sreeja Jayaprakash. The investigation stems from cases originally registered by the Vigilance & Anti-Corruption Bureau (VACB) in Pathanamthitta against former Nilackal Devaswom Board administrative officer J Jayaprakash and other officials of the Travancore Devaswom Board.
The core allegation revolves around financial misconduct during the Mandala Makaravilakku festival period of 2018-19. According to the vigilance case, forged bills and invoices were created under the name of JP Traders, leading to the sanction of ₹59,98,129 from devaswom funds. Investigators found that only one legitimate cheque payment of ₹8,20,935 was made to the actual supplier. The remaining three cheques were fraudulently encashed, resulting in the misappropriation of ₹51,77,194 with the assistance of co-accused individuals.
The ED initiated its PMLA investigation because the offences cited in the First Information Report (FIR)—which include various sections of the Indian Penal Code and Section 13(2) read with 13(1)(a) of the Prevention of Corruption Act—qualify as scheduled offences under money laundering laws. Between July and December 2025, statements were recorded under Section 50 of the PMLA from key persons, including the proprietor of M/s JP Traders, witnesses, and the accused officials. The ED also collected relevant bank statements and cheque details as part of its evidence gathering.
"Investigation revealed that of the proceeds of crime amounting to ₹51,77,194, Jayaprakash B received ₹11,28,922, while the remaining ₹40,48,272 lies in the hands of Jayaprakash J. Further investigation is currently in progress," stated the ED in an official release.
Parallel Investigations: Raids on NCS and Apollo Gold Group Cases
In a separate but concurrent operation, the ED's Kochi zonal office conducted search operations on Thursday targeting the Nedumparambil Credit Syndicate (NCS) and its associated group concerns. These entities, controlled by Raju George and his family members, are under investigation for alleged cheating and misappropriation of investor funds.
The enforcement agency carried out raids at ten premises located across Kerala and Tamil Nadu under the provisions of the PMLA Act. During these search operations, officials recovered and seized various incriminating documents, digital devices, and financial records that are expected to shed light on the alleged financial malfeasance.
In yet another case demonstrating the ED's broad crackdown, the Kochi office issued a provisional attachment order dated February 4 under the PMLA Act. This order attaches immovable properties worth ₹7.81 crore, consisting of several land parcels in Kozhikode district. These properties are primarily held in the name of Moosa Haji Charaparambil and are linked to a case involving cheating by entities of the Apollo Gold Group. The group allegedly operated gold deposit schemes that promised high returns to investors, which are now under scrutiny for potential fraudulent activities.
The coordinated actions by the Enforcement Directorate highlight a rigorous approach to combating money laundering and financial fraud in the region. By targeting properties acquired through alleged proceeds of crime, the ED aims to disrupt illicit financial networks and recover assets for the state. These cases underscore the agency's commitment to enforcing anti-money laundering laws and ensuring accountability in financial transactions, particularly those involving public institutions and investor funds.
