ED arrests Kollam businessman in ₹24.73-cr cashew import scam

Kochi: The Enforcement Directorate on Wednesday arrested Kollam-based businessman Aneesh Babu (34) in connection with a money-laundering probe linked to a multi-crore cashew import scam. He was arrested from a hotel at Pachalam in Ernakulam, ending a period where he had reportedly been absconding following the rejection of his anticipatory bail pleas by the High Court and the Supreme Court. 

The arrest comes amidst a complex legal battle where Babu has simultaneously accused an ED official of demanding a bribe to settle the very case for which he has now been arrested.

The ED initiated its investigation against Babu and his family in 2021 under the Prevention of Money Laundering Act (PMLA). The probe is based on five separate FIRs registered by Kottarakkara police and Crime Branch. According to the case, Babu and his family defrauded two individuals of ₹24.73 crore by promising to import raw cashew nuts from African nations at profitable rates.

According to the ED, Babu and his mother, Anita Babu, have deliberately stalled the investigation. The agency stated that between September 2021 and December 2025, seven summons were issued to Babu and seven to his mother. The ED alleged that Babu failed to appear on seven occasions and was “non-cooperative” the one time he did attend.

The ED contended that the accused failed to provide a justifiable reason for their frequent absences, asserting that this constituted a deliberate violation of summonses issued under Section 50 of the PMLA.

Citing “wilful non-compliance, the ED had recently approached the Judicial First Class Magistrate Court-VIII in Ernakulam, which issued notices to the accused last week. The Kerala High Court, while previously rejecting his bail plea, had also observed that custodial interrogation appeared necessary to trace the proceeds of the crime. Following this he was arrested on Wednesday.

Bribery allegations and demand for CBI probe
Babu has maintained that the ED’s actions are vindictive, triggered by a complaint he filed against an ED Assistant Director. Babu alleged that the officer, Shekhar Kumar, demanded a bribe of ₹2.5 crore to “settle” the money laundering case. Based on this complaint, the State Vigilance and Anti-Corruption Bureau (VACB) had registered a case against Kumar, who was subsequently transferred to Shillong, and three others.

On Wednesday, the same day as his arrest, the Kerala High Court considered a petition filed by Babu seeking a CBI or court-monitored investigation into these bribery allegations, claiming the Vigilance probe was stagnant.

However, the Vigilance department opposed the plea for a CBI probe, informing the High Court that the delay was due to Babu’s own non-cooperation.

The VACB submitted that Babu had handed over a mobile phone via a relative, claiming it contained a recorded conversation with Wilson Varghese, the second accused in the bribery case, who allegedly acted as a mediator for the bribery deal. However, the phone was locked, and the relative did not have the password. Vigilance officials submitted that despite sending notices in October and December, Babu failed to provide the credentials, making it impossible to retrieve evidence or collect voice samples.

Justice A Badharudeen subsequently issued an order directing Babu to provide the password to the Vigilance department, either personally or through a representative, within one week. Meanwhile, the CBI has sought more time to file its reply regarding the demand for a central probe.

Babu will be produced before the court, where the ED is likely to seek his custody for further questioning.