Kamaruddin is mastermind in investment fraud case

Many persons were lured using his clout, govt. tells HC

The State government on Wednesday informed the Kerala High Court that Indian Union Muslim League (IUML) leader and Manjeswaram MLA M.C. Kamaruddin was the mastermind behind the Fashion Gold Jewellery investment fraud.

The government submitted that many persons were lured into investing in the company using his political clout and goodwill. The government pleader made these submissions when a petition filed by the MLA seeking to quash the FIR against him came up for hearing before Justice V.G. Arun.

The government told the court that offences under the new Acts, Kerala Protection of Interests of Depositors in Financial Establishments Act and Banning of Unregulated Deposit Schemes Act, had also been included in the FIR. The Special Investigation Team was conducting a detailed investigation into all aspects of the case. Once the involvement of other directors was revealed, they would be made accused in the case.

The Government Pleader further contended that those who invested in the company had not been issued any share certificates. Besides, no documents of the company showed that they were made shareholders of the company.

The invested money seemed to have been diverted as salary, charges and other revenue expenses of the company without any utilisation in the company’s capital expansion. In fact, the element of cheating was apparent in the case. As many as 85 cases were registered in connection with the fraud in different police stations. The investigating officer required more time to collect evidence for the misappropriation of the money.

The counsel for the MLA submitted that he was not the managing director of the company. He was only one of the directors of the company. No other directors were arraigned as accused. The counsel contended that the ruling party had influenced the police force to get criminal cases registered against him alone.

He had no direct knowledge of the investment made by the complainants. Besides, he was not a signatory to the agreements between the company and the investors, the counsel said.

The court reserved its order in the case.

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