The Enforcement Directorate (ED) recently apprehended A. Abdul Rasheed, the Managing Director of the Heera Group located in Thiruvananthapuram, Kerala, on charges related to money laundering and alleged fund diversion.
The arrest transpired on the night of December 4 under the purview of the Kochi unit of the agency. Subsequently, he was scheduled to appear before the Prevention of Money Laundering Act (PMLA) special court on December 5 afternoon.
The ED initiated the case in 2021 based on a first information report (FIR) filed by the Central Bureau of Investigation (CBI) against the construction company. The allegations centered around fraudulent fund diversion, leading to a substantial loss of approximately ₹5 crore to the State Bank of India (SBI).
The bank had originally granted a loan for a project at Akkulam, Thiruvananthapuram, in 2013. Despite multiple extensions to the repayment deadline, the company failed to fulfill its financial obligations.
Mr. Rasheed and his son Subin Abdul Rasheed were arrested by the CBI in March 2021 but were later released on bail. The case stemmed from a complaint lodged by the SBI Thiruvananthapuram regional manager, citing fraudulent fund diversion and a consequential ₹5 crore loss to the bank.
The loan, initially due by December 23, 2016, had its deadline extended to December 23, 2017. However, the firm failed to meet the repayment terms within the extended period.
In February 2021, the ED had conducted raids at the residences and offices of the accused in Thiruvananthapuram as part of its investigation.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
