The Enforcement Directorate (ED) on Friday conducted raids at multiple premises linked to former MLA PV Anvar and four others in connection with the Kerala Financial Corporation (KFC) loan misappropriation case.
The ED is probing a case under the Prevention of Money Laundering Act (PMLA) against Anvar, his driver Siyad, and three KFC officials — Abdul Manaf, T Mini, and Muneer Ahamed.
The accused were allegedly involved in laundering money by fraudulently obtaining loans sanctioned by the Kerala Financial Corporation in 2015.
The investigation was initiated after the Kerala Vigilance and Anti-Corruption Bureau (VACB) recently registered a corruption case related to loan misappropriation at the KFC Malappuram office.
In 2015, KFC Malappuram sanctioned a loan of ₹7.5 crore to Anvar’s driver Siyad for business purposes without properly assessing the collateral. Within months, loan repayments came to a halt.
Subsequently, two additional loans — ₹3.05 crore and ₹1.56 crore were sanctioned to Anvar’s firm, PVR Developers, against the same collateral used for the earlier ₹7.5 crore loan, an official said.
The KFC incurred a total loss of ₹22.30 crore due to the alleged loan misappropriation.
A team from the ED, accompanied by CRPF personnel, began its raid at Anvar’s residence in Edavanna and at his business establishments, including an amusement park in the district, at around 7 am.
Simultaneous searches were also conducted at the residences of Siyad and the three KFC officials.