ED Uncovers Financial Irregularities in Kerala Loan Scam Involving Former MLA

The Enforcement Directorate (ED) is investigating alleged loan misappropriation by former Kerala MLA P V Anvar. ED claims financial irregularities linked to Anvar's businesses and has seized extensive material during raids. The ED believes that sanctioned funds were diverted and property ownership concealed through benami transactions.

The Enforcement Directorate (ED) has revealed significant financial irregularities in a case involving former MLA P V Anvar and alleged loan misappropriation from the Kerala Financial Corporation (KFC), an official statement said.

Raids were conducted on Friday at Anvar's residences and businesses, leading to the discovery of potential misuse of loans, originally amounting to Rs 7.5 crore granted to Malamkulam Constructions in 2015. There were subsequent loans of Rs 3.05 crore and Rs 1.56 crore issued to Pee Vee Aar Developers, resulting in a non-performing asset totaling Rs. 22.3 crore, the statement added.

The ED has identified 15 bank accounts linked to suspected benami transactions while examining seized evidence. Anvar reportedly admitted to controlling Malamkulam Constructions and using loan funds for the Pee Vee Aar Metro Village project. Investigations suggest funds diversion, unapproved constructions, and use of nominal shareholders, with further scrutiny focusing on loan fund diversion and procedural lapses by KFC officials.

(With inputs from agencies.)