Kochi: The Enforcement Directorate (ED) has intensified its probe into a major financial scam allegedly involving Arafa Gold, serving a formal notice to its owner, Abdul Latheef. The Central agency has directed him to appear for questioning at its Kochi regional office on Wednesday morning.

The summons follows extensive search operations conducted by ED officials a day earlier at three locations linked to the jeweler, including commercial establishments in Kollam and Thiruvananthapuram.

 

CBI case forms basis for money laundering probe

The financial investigation originates from a criminal case initially registered by the Central Bureau of Investigation (CBI), based on a formal complaint lodged by UCO Bank. The bank alleged that the promoter defaulted on substantial loans amounting to crores of rupees after fraudulently siphoning off funds.

Taking cognisance of the CBI FIR, the ED launched a parallel money laundering probe to trace the proceeds of the crime and assess the financial irregularities.


Evidence scrutiny during interrogation

During the recent raids at Arafa Gold outlets, investigators seized digital records, transactional documents and financial ledgers. Sources indicated that the upcoming interrogation will focus primarily on cross-examining Latheef against the evidence and documents recovered during those raids.

The agency is expected to question the promoter regarding the diversion of bank funds, asset creation and the loan repayment defaults highlighted in the bank's initial audit.