The action is under the Prevention of Money Laundering Act. It is alleged that the amount was collected from the public and used for money laundering and the proceeds were diverted and invested in immovable properties and shares of Manappuram Finance Limited in the name of Nandakumar Thanera, his wife and children.
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Manappuram Agrofarms who faced action
It is indicated that some documents and title deeds of 60 immovable properties were seized in the raid conducted at Manappuram Finance Limited. The proceedings are in the name of public investment made by VP Nandakumar Thanera through Manappuram Agro Farms (MAGRO) without RBI approval.
The investment was collected by Nandakumar through some employees from various branch offices of the listed company Manappuram Finance Limited, which led to the investigation.
The explanation given by the Income Tax Department is that when the RBI asked to refund the amount to the investors, it responded that the money had been refunded but there was no proof of refund to the investors or KYC of the investors.
At the same time, the head of the company VP Nandakumar responded that the action was taken as part of some transactions made by a non-existent company called Manappuram Agro Farms (MAGRO) and only his personal earnings as a promoter were frozen. Manappuram Finance clarified that the action of the Income Tax Department is against the promoter and not against the company.
