BLM financial fraud case: ED expands probe, conducts raids at 10 key Kerala, TN locations

Kochi: The Enforcement Directorate (ED) has widened its investigation into the BLM (Bharath Lajhna Multi State Cooperative Society) financial fraud case, carrying out raids at 10 major locations, including BLM's headquarters in Koyambedu, Chennai, as well as sites in Coimbatore, Kochi and Kozhikode.
The action follows allegations that crores of rupees collected from investors, with promises of high dividends and returns, were not refunded upon maturity, resulting in widespread fraud by the BLM, a leading cooperative society in Kerala and Tamil Nadu.

The ED had previously completed a preliminary inquiry and registered an Enforcement Case Information Report (ECIR). The agency has now intensified its scrutiny under the Prevention of Money Laundering Act (PMLA) and hawala transaction laws.

According to a report submitted to the High Court by the Crime Branch's Financial Crimes Investigation Division, funds deposited into the society were illegally diverted by founder R Premkumar for his personal use and that of his relatives.

Furthermore, funds were unlawfully transferred to purchase a cinema theatre, resorts and hotels in Thrissur, as well as credited into accounts of private companies controlled by them.

Kozhikode Crime Branch officers had earlier arrested BLM chairman R Premkumar in connection with the case. However, the court granted him bail after observing that proper procedure was not followed during the arrest. The ED raids took place even as the Crime Branch continues procedural steps to re-arrest Premkumar.