IUML MP Kamaruddin Arrested In Kerala For Rs.15 Crore Gold Deposit Scam – The New Indian Express
Express news service
KASARAGOD: A day after the local elections were proclaimed, Manjeshwar MP and leader of the Indian League of Muslim Union (IUML) MC Kamaruddin was arrested for duping depositors in his gold trade.
A special investigative team, led by Deputy Superintendent of Police (ASP) Vivek Kumar, questioned Kamaruddin for six hours before being arrested at 4 p.m.
This is the first time he has been questioned by police in the case, although the first complaints against him were filed by three depositors on August 28. They alleged that the MLA had duped them for Rs 36 lakh.
Since then, 115 depositors in the gold sector – operated under the Fashion Gold brand – have filed a cheating complaint (Article 420 IPC) against Kamaruddin. Criminal cheating is a knowable offense that does not give rise to caution.
He was asked about 77 complaints alleging that the MLA had duped them for Rs 13 crore.
Kamaruddin was arrested in the first three cases, however.
The ASP told reporters that police had evidence the MP defrauded his depositors of Rs 15 crore.
Previously, the MP’s business partner and religious leader, TK Pookoya Thangal, had been questioned for nine hours by the special investigative team and released. He was summoned to the district police chief’s office and is expected to be arrested on Saturday.
True, Thangal faces the same charges against Kamaruddin. Kamaruddin and Thangal have started at least four gold jewelry companies since 2006 and have reportedly raised Rs 140 crore from 800 depositors. In all of the companies, Kamaruddin was a full-time director and chairman, and Thangal was a director and general manager.
The four companies had stores in Kasaragod, Cheruvathur, Payyannur and Thalaserry. All four stores closed between October and December 2019. “But jewelry companies continued to accept deposits from the public even after that,” said C Shukkur, an attorney who works with the plaintiffs.
Kamaruddin used to promise high interest rates above 12% and 14% to depositors and reportedly serviced the loans by taking more deposits – a classic feature of Ponzi schemes.
Granted, bonds were only earning about 8-9%, and the banks only gave 5-6% interest.
The IUML alleged that the interrogation and arrest of Manjeshwar MP MC Kamaruddin was a political spectacle scheduled for the election of the local body. “Although the complaints against him were filed in August, he was questioned for the first time today and now they are threatening to arrest him,” Kasaragod MP NA Nellikkunnu said. “These developments come a day after the proclamation of local elections,” he said.
Kamaruddin asked the Kerala High Court to overturn the criminal FIRs, saying the cases were civil in nature, he said. “I understand the case is due to be heard on Tuesday. The police are taking the plunge in trying to arrest him today,” Nellikkunnu said. Admittedly, the case was overturned twice by the High Court.
Kasaragod IUML Treasurer Kallatra Mahin said it was a case of business collapse, not cheating. Fashion Gold has been paying dividends since 2006. Mahin is one of the investors in the gold sector.
The party leadership had given him the responsibility of preparing a white paper on Kamaruddin’s affairs, and Mahin concluded that the MLA was unable to return the money.
The IUML leadership called for a meeting in Kozhikode on Sunday to discuss the development.
“My arrest by order of the government”
Manjeshwar MC Kamaruddin said he was arrested on government orders. “My arrest is politically motivated. My case comes to the High Court on Monday, but they didn’t even wait for it,” he said.
He asked the High Court to overturn the criminal FIRs against him, saying the cases were civil in nature.
He said he received no notice but was called to the district police chief and arrested. “All of this cannot destroy me,” he said.
Cases against MLA filed by supporters of IUML: CPM
Manjeshwar MP MC Kamaruddin’s claim that his arrest was politically motivated was a face-saving statement, the PMO said.
It could be politically motivated if the complaints were lodged by supporters of the CPM, said member of the CPM district secretariat, VPP Mustafa. “In this case, the plaintiffs are sympathizers and members of the IUML, and the evidence was produced by supporters of the IUML,” he said.
Mustafa said the police did a meticulous job dealing with 113 complaints and gathering evidence. “That is why they were able to arrest the deputy the same day he was summoned for questioning. That is why the court accepted the arrest note,” he said.
One of the charges against the MP and his partner Pookoya Thangal was that they had abused their trust among IUML supporters to raise money for their business.