Kochi: The Enforcement Directorate (ED) has uncovered a network of around 320 bank accounts allegedly used to divert public deposits collected by the Bharath Lajhna Multi State Housing Co-operative Society Ltd (BLMSHCS), as part of its money laundering investigation against the society’s founder, R Premkumar.

The agency has also frozen and seized movable and immovable assets worth ₹103 cr following searches at 12 premises across Kerala and Chennai on November 4.

According to an official release issued by the ED's Kochi Zonal Office on Thursday, the investigation under the Prevention of Money Laundering Act (PMLA) revealed that funds entrusted to the cooperative society by depositors were allegedly diverted to acquire high-value assets in the names of Premkumar and his family members.

The searches covered premises in Ernakulam, Kozhikode, Thrissur, Thiruvananthapuram, Munnar and Chennai.

The ED said its analysis of approximately 320 bank accounts operated by Premkumar and his associates revealed a network of financial transactions allegedly intended to conceal the origin and movement of funds belonging to the cooperative society.

“The analysis of the accounts show that public funds of BLMSHCS have been diverted by R Premkumar for personal benefit and for acquiring assets [both movable and immovable] in the name of family members or entities controlled by them,” the agency said.

The investigation also found that Premkumar continued to exercise active, day-to-day administrative control over BLMSHCS and was signing statutory documents on behalf of the cooperative society.

Alleged diversion of deposits
The ED initiated its money laundering investigation based on an FIR registered by the Kerala Police against Premkumar, identified as the founding member and de facto chairman and managing director of BLMSHCS, and several associates.

The FIR alleged that Premkumar exploited his position to divert crores of rupees collected from public depositors into bank accounts held by his relatives and family members to acquire assets.

It also alleged that properties belonging to the cooperative society were mortgaged to financial institutions and that the loan proceeds were siphoned off for personal gain and the creation of family assets. The initial proceeds of crime were estimated at approximately ₹80 cr.

However, the ED said its subsequent investigation indicated that the overall misuse of society funds ran into hundreds of crores of rupees. The exact extent of the alleged financial diversion is being quantified.

Shares, gold and luxury cars seized
The assets frozen and seized during the searches are collectively valued at ₹103 cr.
These include shares worth approximately ₹80 cr, 7,400 g of gold jewellery valued at around ₹9.6 cr and eight luxury vehicles worth approximately ₹7 cr.

The vehicles include models from Porsche, Rolls-Royce, Mercedes-Benz, Toyota Vellfire and Mahindra EV 9E.
The agency also identified immovable properties valued at around ₹5 cr and bank deposits totalling approximately ₹1.86 c.

The ED said further investigation was underway to trace the complete money trail, identify associated shell entities and establish the network of beneficiaries who allegedly received or held the diverted funds.