ED Freezes Rs 143 Cr Assets Of Manappuram Finance Chief, Shares Fall 12%

The Enforcement Directorate on Thursday said it has frozen assets worth Rs 143 crore of Kerala based NBFC Manappuram Finance Ltd's MD and CEO V P Nandakumar after it carried out raids as part of a money laundering investigation, according to a PTI report. The impact of the raids can be seen on the shares of the company as they fell over 12% till 9:30 am on May 5 on BSE.

Meanwhile, shares of Manappuram Finance Ltd witnessed a steep decline of 12.12 % in morning trade till 9:37 am on May 5, 2023. The current market price of Manappuram Finance is Rs 104.80 apiece on BSE. The stock declined 19% in just 1 week and 17% in last 2-weeks.

A total of six premises in Thrissur, where Manappuram Finance is headquartered, were covered during the raids that were launched on Wednesday, added the PTI report.
The case relates to accusations of money laundering through the "illegal" collection of deposits from the public, stated the agency in a statement.

During the course of searches, the ED said, it was found that the proceeds of crime have been "diverted and invested" by V P Nandakumar into immovable properties in his name, in the name of his spouse and children and into the shares of Manappuram Finance Ltd, added PTI report.

"Hence, ED has freezed the assets of V P Nandakumar under the Prevention of Money Laundering Act (PMLA), totalling Rs 143 crore," it said. The frozen assets include deposits kept in eight bank accounts, investment in listed shares and shares of Manappuram Finance Limited, the agency said.

The PTI report stated, Various "incriminating" documents showing money laundering and property documents of 60 immovable properties were also seized during the course of the searches, it said.