The company on Thursday stated that it would be able to provide more information on completion of the search. The company on Thursday stated that it would be able to provide more information on completion of the search. The company on Thursday stated that it would be able to provide more information on completion of the search. Manappuram Finance Limited on Thursday said the Enforcement Directorate’s ongoing searches into its alleged illegal collection of deposits, is linked to the money collected by an erstwhile proprietor of promoter's concern, prior to 2012, which were subsequently paid except an amount of Rs 9.25 lakhs.
"This is mainly with reference to the deposits accepted by Manappuram Agro Farms (MAGRO), an erstwhile sole proprietor of the concern of the promoter, prior to 2012, which were subsequently repaid except of the deposit of Rs 9.25 lakhs which could not be repaid by them despite MAGRO’s continuous efforts," the company said in a filing.
It further added that it is co-operating with the Enforcement Directorate’s investigation team by providing the required details sought by them.
On Wednesday, the Enforcement Directorate conducted searches at multiple premises linked to the Kerala-based non-banking financial company (NBFC) as part of a money laundering investigation against it.
The raids are being undertaken to gather pieces of evidence related to allegations that the company collected public deposits worth more than Rs 150 crore in contravention of Reserve Bank of India (RBI) guidelines, PTI reported citing official sources.
A total of four premises including the headquarters of the company in Thrissur and those of its MD and CEO V P Nandakumar were searched.
The company on Thursday stated that it would be able to provide more information on completion of the search.
Shares of Manappuram Finance rebounded on Thursday after witnessing a steep fall in the previous session. The stock climbed 4.65 per cent to settle at Rs 119.25 over a previous close of Rs 113.95.
The agency, according to sources, suspects "large-scale" cash transactions by the company and is looking at gathering documents and recording statements of the company executives in this context, the PTI report stated.
Some documents are understood to have been seized by the ED officials during the searches.
The company offers a string of products portfolio like online gold loan, micro-home finance, forex and money transfer, business loan, secured personal loan among others.