Manappuram Finance shares jump 6% as HC asks ED to unfreeze assets

Shares of Manappuram Finance climbed nearly 6 per cent in Wednesday's trade after the Kerala High Court of Kerala quashed an FIR against Managing Director and CEO VP Nandakumar and asked the Enforcement Directorate to return and release all the original documents of the properties frozen pursuant to order it issued under Section 17 (1-A) of the Prevention of Money Laundering Act.

To recall, the ED has accused Manappuram Finance of illegal collection of deposits worth Rs 150 crore from the public without the central bank's approval. It was also suspected of conducting large scale cash transactions without following KYC norms.

Following the fresh development, the stock rose 5.55 per cent to hit a high of Rs 148.20 on BSE. The FIR was filed at Valapad police Station, Thrissur District.

"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 BSE filing.

Manappuram Finance had earlier in May suggested that its premises were searched by the ED, on charges of illegal collection of deposits, and had suggested that it was extending its full support to the department.

The agency carried out searches at multiple locations on premises linked to Manappuram Finance in Thrissur in Kerala, Manappuram Finance's registered office.

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