The Enforcement Directorate (ED) has questioned George Alexander Muthoot, Managing Director of the Muthoot Group, concerning allegations of investor fraud and money laundering. The probe follows the FIRs filed by Kerala Police accusing Muthoot Finance branch managers of misleading investors by promising high returns on fixed deposits and non-convertible debentures (NCDs) ranging from 8 to 12 percent per annum.
According to the complaints, funds raised from investors were allegedly diverted to Srei Equipment Finance Limited, a company that was falsely represented as a subsidiary of the Muthoot Group. This misrepresentation resulted in many investors not receiving their maturity payments, sparking allegations of fraud and misappropriation.
ED officials have registered a case under the Prevention of Money Laundering Act (PMLA) and summoned George Alexander Muthoot to record his statement at their Kochi office. The investigation is focusing on the flow of funds and the role of company executives in the transactions.
Authorities are expected to question other senior officials and scrutinize the financial records of the associated companies as part of an ongoing probe. The case highlights growing concerns about the safety of investments in non-banking financial companies promising high returns.
Investors have expressed unease amid the investigations, while the ED has urged them to stay informed and seek professional advice when dealing with high-risk investment products.
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