ED raids Qatar-based Kerala businessman on money-laundering charges

The Enforcement Directorate (ED) last week conducted raids at three locations in Kerala, uncovering evidence of an alleged financial fraud involving a Qatar-based Kerala businessman.

Ismail Chakkarath of Kannur had allegedly duped the United Bank Limited in Doha, Qatar, of over ₹61 crore, news agencies ANI and PTI have reported.

The ED's Kozhikode sub-zonal office carried out the searches under the Prevention of Money Laundering Act (PMLA) and seized ₹3.50 lakh in cash and documents linking Mr Chakarath Chakkarath to the scam. 

The money-laundering case stems from an FIR filed by the Crime Branch and the Economic Offences wing of the Kerala Police (Kannur and Kasaragod districts) on the allegations that Mr Chakkarath, a resident of Thuvakkunnu in Kerala's Kannur district, was running a firm called Grant Mart Trading in Doha.

Investigators reportedly found that Mr Chakkarath had secured a loan of QAR 30,643,204 (approximately ₹61.28 crore) from United Bank Limited, ostensibly to expand his Doha-based firm, Grant Mart Trading. However, he neither repaid the loan nor used it for its intended purpose..

The ED's probe reportedly found that Mr Chakkarath had diverted the loan to investments in Wayanad using benami transactions to conceal his involvement. 

One transaction involving ₹2.02 crore for an immovable property purchase fell through, but the seller reportedly retained the funds. The ED has frozen 10 bank accounts linked to Mr Chakkarath and his associates.

ED authorities said the case highlighted the growing challenges of cross-border financial fraud and the need for enhanced international cooperation in combating such sophisticated schemes.

                                                       (By arrangement with livemint.com)