Kochi: A Chennai-based businessman, who had earlier made allegations against CPM leaders, was arrested on Friday for allegedly cheating two individuals in Kerala of ₹40 lakh, police said. The accused, identified as 48-year-old Muhammad Sharshad from Nungambakkam, Chennai, faces two cheating cases registered at the Ernakulam South Police Station on September 16.

According to police, Sharshad collected ₹30 lakh from a Kadavanthra resident and ₹10 lakh from another person in Elamkulam in 2023, promising 24 per cent annual returns through investments in a firm named Penda Private Limited.

He claimed to be the company’s director and introduced a Tamil Nadu native, Saravan, as its CEO. Sharshad also offered the complainants a 5 per cent stake in the firm, police said. However, the accused failed to return the money or deliver on his promises. Following a court directive, the police registered a case after the complainants sought an investigation.

Sharshad, who had previously alleged that a UK-based businessman was a “benami” of CPM leaders in Kerala and accused party state secretary M V Govindan’s son of leaking his complaint, was arrested from Chennai and is being brought to Kochi, police said.

He will be produced before the court on Saturday.