Kasaragod: The police on Tuesday raided the houses of Manjeshwaram MLA M C Kamaruddin and T K Pookoiya Thangal, a functionary of the Indian Union Muslim League (IUML), in connection with the multiple cases registered for allegedly cheating several people who invested in a gold jewellery business run by the duo.
Only family members were present at the houses during the raids, sources said.
The raids were led by Chandera Station House Officer P Narayanan.
The duo was allegedly cheated around Rs 100 crore from several people who were invested in Fashion Gold International, a jewellery business run by the leaders. Kamaruddin was the chairman and Pookoya Thangal was the managing director of the firm.
They were booked under section 420 (cheating) of the Indian Penal Code after over two dozen complaints were received in the Chandera and the Kasaragod police stations.
Out of the 12 complaints, seven have been handed over to the Crime Branch. Chandera police are investigating remaining five complaints.
A senior police official said the complaints alleged that the company failed to pay them even after they have paid for the shares.
"The complaints show that a fraud of around Rs 100 crore has happened. But there are many investors who are not willing to approach the police," PTI reported, quoting an unnamed police official.
Police were expecting more people to approach the agency with complaints.
"Some are reluctant to approach the probe agency as then they will have to explain the source of income for the investment," the official added.
Politically motivated: Kamaruddin
Kamaruddin sought to reject the allegations as 'politically motivated' while senior IUML leader and MP P K Kunhalikutty said it appeared the company had gone bankrupt and the party would look into the matter.
Kamaruddin told reporters that "the allegations are politically motivated. It's possible for us to return the money to the investors."
In an apparent damage control move, the UDF removed Kamaruddin from the post of district chairman of the front.
Kunhalikutty, a former minister, said the allegations were serious and the party would 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 told mediapersons.
(With PTI inputs)
