District Police Chief D. Shilpa has transferred cases of cheating registered against Manjeswaram MLA M.C. Kamaruddin and Pookoya Thangal, chairman and managing director respectively of Fashion Gold jewellery, to the district Crime Branch.

Earlier last week the Chandera police registered three cases against the MLA and Pookoya Thangal, based on a complaint lodged by three people who alleged that they were cheated of ₹34 lakh deposited in the Fashion Gold jewellery shop at Cheruvathur.

Three branches of Fashion Gold jewellery were closed in January last year following losses. Since August last year, investors have not been paid dividends.

Since then, 12 cases had been registered in various police stations in the district, said Ms. Shilpa. She said the decision to transfer the cases to the district Crime Branch was taken as more cases emerged against the duo.

Cheque bounce case

On Sunday, it came to light that the Kanhangad magistrate court has issued notices to the MLA and Pookoya Thangal to appear before it on December 2, based on a case filed by two who deposited ₹78 lakh in the jewellery group. They alleged that the cheque given by the MLA and Thangal bounced for want of money in their accounts.

The petitioners, Zubair and Ashraf of Kallar, said though the issue was brought to the notice of the leaders of the Indian Union Muslim League, no steps were taken to help them.

Mr. Zubair said that he had demanded to return ₹28 lakh he had invested after the closure of Fashion Gold jewellery branches in October last year. The MLA and Pookoya Thangal signed and handed over two cheques of ₹15 lakh and ₹13 lakh. But the cheques bounced as the accounts had no money. Likewise, they also collected ₹50 lakh from Ashraf, an expatriate businessman. He too was given cheques of ₹15 lakh and ₹20 lakh. However the cheques bounced when he approached the bank to encash them.

Following which both approached the Kanhangad Magistrate Court in March this year.

MLA’s explanation

The MLA in his response to the earlier cases had said that he was being targeted by political rivals. Though he was the chairman of the Fashion Gold group, which raised money from the public as investment and deposits, he was not running the day-to-day affairs of the business, the MLA had said.

In the cheque bounce case, Mr. Kamaruddin said that he did not directly give cheques to anyone. He said that the cheques he had signed might have been taken by someone from the jewellery shop. Some people were trying to create a problem when steps were being taken to solve the issues, he told the media.