Manappuram Finance money laundering case: Kerala HC directs ED to return original documents of properties frozen; stock gains

Manappuram Finance case: The Kerala High Court on Wednesday quashed the FIR registered against V. P. Nandakumar, Managing Director and CEO of Manappuram Finance, in relation to a money laundering case. The HC asked the Enforcement Directorate to return all original documents of the frozen properties within three weeks from the receipt of the court's judgment. 

The Kerala HC had quashed the Enforcement Directorate's (ED) case on August 28, and no fresh FIR has been registered ever since.

"In view of the quashing of the FIR and ECIR and in the absence of any further FIR being registered, the Hon’ble High Court of Kerala on September 12, 2023, has directed the Enforcement Directorate to return and release all the original documents of the properties frozen pursuant to order dated May 4, 2022, issued by the Enforcement Directorate under Section 17 (1-A) of the Prevention of Money Laundering Act, 2002 within 3 weeks from the date of receipt of the judgment of the High Court," the company said in a regulatory filing on Wednesday. 

Shares of Manappuram Finance were trading at Rs 147.20, up by 4.84 per cent, at 1.20 PM.

It is to be noted that the ED on May 5 seized assets valued at Rs 143 crore belonging to Nandakumar following raids conducted as part of the probe.

The ED searched multiple locations on premises linked to Manappuram Finance Limited in Kerala’s Thrissur earlier this year. Searches were also carried out at the headquarters and residence of promoter Nandakumar.

It was alleged that the company had an illegal collection of deposits of more than Rs 150 crore from the public without the approval of the Reserve Bank of India (RBI).

According to the company, Nandakumar had submitted the chronology of events related to the recent ED raid against him. The raids were conducted based on a complaint filed by PK Sagar, before Judicial Magistrate Kodungallur.

Following this, an FIR was registered by Valapad Police Station. "Subsequently, an Enforcement Case Information Report (“ECIR”) was registered by the Enforcement Directorate...dated September 6, 2022," the company said.

Nandakumar had then approached the Kerala High Court "seeking to quash the ECIR and all further proceedings pursuant to the ECIR".

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