The allegation against the company is that they collected deposits amounting to more than Rs 150 crore from the public without the approval of the Reserve Bank of India (RBI).

news News Wednesday, May 03, 2023 - 14:38
Written by  IANS

The Enforcement Directorate (ED), on Wednesday, May 3, raided at least four locations connected to Kerala's Manappuram Finance, a leading Non-Banking Financial company (NBFC). The raided offices include the headquarters of the company in Thrissur and the residence of Manappuram’s promoter VP Nandakumar. The raids are conducted in connection with allegations that the NBFC collected funds from the public without the Reserve Bank of India's approval.

Manappuram Finance is a well-known NBFC in India that offers a range of financial services, including gold, microfinance, and housing loans. The company, which has been in operation for over three decades, has a significant presence in South India.

According to reports, the allegation against the company is that they collected deposits amounting to more than Rs 150 crore from the public without the approval of the Reserve Bank of India (RBI). The ED is yet to officially comment on the ongoing raids. Earlier, in 2020, the RBI imposed a penalty of Rs 5 lakh to Manappuram, citing non-compliance with RBI directions on maintenance of loan-to-value ratio in gold loans and for not obtaining copies of PAN card of the borrower while granting gold loans in excess of Rs 5 lakh.

(With IANS inputs)