ED Probes Muthoot Group in Investor Fraud Scandal
The Enforcement Directorate questioned George Alexander Muthoot of the Muthoot Group over a money-laundering case related to investor fraud. The case involves allegations against Muthoot Finance managers diverting funds to a misrepresented company. Investors were misled by promises of high returns, leading to financial losses.
- Country:
- India
The Enforcement Directorate (ED) intensifies its probe into a money-laundering case involving the Muthoot Group. George Alexander Muthoot, managing director, was questioned as part of an investigation linked to an investor fraud case, according to official sources.
The ED's Kochi unit registered a case under the Prevention of Money Laundering Act (PMLA) following multiple FIRs by Kerala Police. These complaints suggest Muthoot Finance branch managers baited investors with returns of 8 to 12% on fixed deposits and NCDs, only to channel funds to a different entity.
This entity, misrepresented as an affiliate of the Muthoot Group, precipitated significant investor losses, as they failed to receive their investments back upon maturity. Muthoot was summoned by the ED to provide testimony, further unraveling the complexities of this financial scandal.
(With inputs from agencies.)
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