ED arrests Kerala-based man in Qatar bank loan 'fraud' case

New Delhi: The Enforcement Directorate Wednesday said it has arrested a Kerala-based man on money laundering charges in a case linked to alleged illegal diversions of loan funds worth more than Rs 61 crore taken from a bank in Qatar.

Ismail Chakkarath was taken into custody on Tuesday and was produced before a court in Kozhikode which remanded him to judicial custody till December 10, the federal agency said in a statement.

The money laundering case stems from an FIR filed by the Kerala Police crime branch for “non-repayment” of QAR (Qatari Riyal) 30,643,204 (about Rs 61.3 crore) loan from the United Bank Limited in that country for the business development of Grand Mart Trading, Qatar.

The loan was “neither repaid nor used” for the stated purpose of business expansion and “illegally diverted” to India by depriving the lender (Qatar bank) from taking further course of action for recovery of loan, the ED claimed.

Probe found, as per the agency, that the loan fund was “diverted” to India and invested in “benami” transactions in Wayanad, Kerala.

“Rs 2.02 crore was allegedly utilised for the attempted purchase of immovable property, which was not finalised. The funds remained in the possession of the purported seller. Properties and assets acquired using these funds were held in his associate’s names to obscure actual ownership,” the agency said.

The ED said it has recorded the statement of some persons where they claimed that “significant” amount of this loan fund was “diverted” for property acquisitions and investments and about Chakkarath’s involvement in the offence of money laundering.