The Enforcement Directorate (ED) has arrested A. Abdul Rasheed, Managing Director of the Heera Group based in Thiruvananthapuram, Kerala, in connection with a case related to money laundering and alleged fund diversion.
His arrest was recorded on December 4 (Monday) night by the Kochi unit of the agency. He was set to be produced before the Prevention of Money Laundering Act (PMLA) special court here on December 5 (Tuesday) afternoon.
The ED had registered the case in 2021 based on a first information report (FIR) filed by the Central Bureau of Investigation (CBI) against the construction company following allegations that it had fraudulently diverted funds, causing a loss of around ₹15 crore to the State Bank of India (SBI).
The bank had loaned the amount to the firm for a project at Akkulam, Thiruvananthapuram, in 2013. Though the bank had extended the repayment deadline multiple times, the company failed to repay the money.
The CBI arrested Mr. Rasheed and his son Subin Abdul Rasheed in March 2021 and they were later released on bail.
The case was registered on a complaint filed by SBI Thiruvananthapuram regional manager, alleging fraudulent diversion of fund, causing a loss of ₹15 crore to the bank. The loan was to be repaid by December 23, 2016. However, it was not completed as scheduled and the bank had extended the loan period to December 23, 2017. The firm failed to repay it before the extended deadline.
The ED carried out raids in February 2021 at the residence and the office of the accused in Thiruvananthapuram as part of its probe.
