Malappuram: The Indian Union Muslim League (IUML) on Thursday asked its Manjeswaram MLA M C Kamarudheen to come clean in an alleged cheating case within six months.
The IUML was in a tight spot after over two dozen complaints were lodged with the police and a case registered against the MLA and his partner T K Pookoiya Thangal, also from IUML, for allegedly cheating people of crores of rupees invested in a jewellery group.
A high-level meeting of the IUML asked the MLA to submit a detailed statement of the liabilities and his worth to the party by the month-end.
The IUML leadership was forced to take stringent measures against the MLA as more and more people have been complaining of cheating by Kamarudheen.
Meanwhile, the CPM has alleged that financial fraud was committed by the MLA with the knowledge of IUML leadership. CPM leaders also said that the IUML statement which came in the light of allegations was an attempt to protect those involved in the cheating case.
"Though the liabilities are purely personal, the party considers the case against him very seriously...The MLA has not cheated anyone but the issue has come up due to the loss suffered by the business group. However, the MLA and his partners should repay the debts and clear all liabilities within six months," senior leader and MP P K Kunhalikutty said after the meeting.
The party had also removed the MLA from the post of chairman of the UDF.
The MLA is alleged to have cheated investors of Fashion Gold Jewellery Group of which he was chairman. The group, which had four branches, were closed reportedly due to losses a couple of years ago.
The case came under the spotlight after many investors of the jewellery group had complained to the police that the MLA and a religious leader Pookaya Thangal, who is its managing director, had defaulted refund of their investment amounting to crores of rupees.
The MLA was at the helm of the group since its inception in 2003. He expanded the business network to have four branches. But business started heading south in 2017.
Investors alleged that the company had cheated them and it had stopped paying dividends for years. All branches of the jewellery chain have downed shutters, they said.
On Tuesday, the Crime Branch Police conducted raids on the house of Kamarudheen and Thangal in connection with the case registered against them. Sources said as many as 249 investors had put in a total of nearly Rs 130 crore in the jewellery group. Though Kamarudheen had made it to Malappuram to meet and brief the IUML chief Hyderali Shihab Thangal in nearby Panakkad this morning, the MLA was denied a direct hearing by Thangal.
Consequent to this, Kamarudheen detailed his version of the case with senior leaders of the party, including its national general secretary Kunhalikutty and general secretary K P A Majeed, over phone.
On Wednesday, the crime branch took over the probe into the cheating case.
The IUML is a major ally of the United Democratic Front (UDF).
(With inputs from PTI)