Kochi: Federal investigators probing allegations of financial fraud involving former lawmaker P.V. Anvar have summoned him for questioning later this week, authorities said Monday.

The Enforcement Directorate (ED) issued a formal notice via mail and electronic mail directing Anvar to appear at its Kochi zonal office on Dec. 31. The move follows a series of raids conducted last month at the politician's residences and business offices in Malappuram.

The central agency is investigating a 2015 loan of 7.5 crore rupees granted by the state-run Kerala Financial Corporation (KFC) to Malamkulam Constructions, a firm the ED links to Anvar. Investigators allege that subsequent loans of 3.05 crore and 1.56 crore rupees were later issued to another entity, Pee Vee Aar Developers, using the same collateral already pledged for the initial debt. The ED stated this manoeuvre resulted in a total non-performing asset (NPA) of approximately 22.3 crore rupees.

During the probe, the agency identified 15 bank accounts held by suspected "benamis," or proxy owners, used for questionable transactions.

"During the searches, Anvar admitted to being the real beneficial owner of Malamkulam Constructions, despite the company being held in the names of his nephews and driver," the ED said in a statement. "He confirmed that the loan amounts were used for the large township project Pee Vee Aar (PVR) Metro Village."

Federal agents also alleged that Malamkulam Constructions erected buildings within the PVR Metro Village without necessary local regulatory permits and claimed that "proceeds of crime" were funnelled into the construction. Inspection of the project site revealed extensive commercial development, including resorts, schools, an amusement park, and residential blocks.

The ED’s money laundering case stems from an earlier corruption inquiry launched by the Kerala Vigilance and Anti-Corruption Bureau (VACB) regarding loan irregularities at the KFC’s Malappuram branch.

Anvar, a former MLA from Nilambur, recently joined the All India Trinamool Congress, which was recently inducted as an associate member of the opposition United Democratic Front (UDF). He previously represented the Left Democratic Front (LDF) before parting ways with the ruling coalition.

With inputs from PTI