Kerala MLA Accused Of Looting Investors Of Rs 136 Crore In The Name Of Gold Investments

MC Kamaruddin, the MLA from Manjeshwaram in Kerala¡¯s Kasaragod, has been accused of defrauding dozens of investors, including NRIs for over Rs 100 crore which he had collected as gold investments.

Kamaruddin who belongs to the Indian Union Muslim League (IUML) and another local leader of the party Pookoya Thangal had allegedly got investments of hundreds of crores for Fashion Gold International, a jewelry chain where he was the Chairman and the latter was the managing director.

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Fashion Gold had outlets in Payyannur, Thalassery, Cheruvathur, and Kasaragod, which are now shut down.

Over 2 dozen cheating complaints received

The police have so far received around two dozen complaints against the MLA for cheating. However, it is believed that the number of those cheated is much higher, but many cannot move legally as they won't be able to show the source for the money they invested.

A case has been registered against both the IUML leaders, under 420 (cheating) of the Indian Penal Code, police said, adding that they suspect a multi-crore fraud. So far the several complaints that have surfaced account to around Rs 136 crore.

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"We have been informed that there are eight cases registered in two police stations. However, we are yet to receive the files from the local police," a District Crime Branch official told PTI.

According to the complaints, the MLA had promised profit proportional to their investment and the return of the principal amount whenever they ask for it.

'Bankruptcy caused due to lockdown'

The IUML has claimed that Kamaruddin did not cheat any investors, adding that the current financial troubles were caused by the lockdown, which resulted in Fashion Gold going bankrupt.

Kunhalikutty, a former minister, said the allegations were serious and the party will take a decision soon.

"The firm has gone bankrupt it seems. It's not easy for the party to make a decision in this matter. Many commoners have invested in this firm. We will inquire into it and take a decision accordingly," he said.

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Investors however claim that the troubles had started long before that and the MLA had been evading them for nearly a year now.

Kamaruddin who had been 'missing' for days after the allegations surfaced told reporters on Monday that the allegations are politically motivated and promised to return the money to the investors within four months."

Kamaruddin who became the MLA in October 2019 has recently courted controversy after it emerged that he had used his influence to make several mosques invest in his jeweller group.

He was also accused of illegally transferring the land owned by Waqf Board to a trust controlled by IUML leaders including himself.