Kannur Urban Nidhi case: ED freezes ₹9.75 lakh in eight accounts

The Directorate of Enforcement (ED) conducted searches at five locations across Kannur, Palakkad, and Kottayam as part of an ongoing investigation into money laundering linked to the Kannur Urban Nidhi (KUN) fraud case. Initiated based on multiple FIRs registered by the Kannur Police, the investigation targets KUN, its directors, and promoters, the ED said in a post.

KUN attracted investors by offering high returns of 12-12.5% on fixed deposits, using extensive media advertising across districts. However, the promoters allegedly siphoned off large amounts from KUN to a newly formed company, Any Time Money (ATM), diverting these funds into personal and business accounts, resulting in massive investor losses.

The recent searches led to the freezing of eight bank accounts holding approximately ₹9.75 lakh, all linked to one of the main accused, Antony Sunny.

Investigators also uncovered property documents tied to his family, revealing the use of misappropriated funds to clear debts on a family-owned resort. This followed earlier searches at KUN and ATM directors’ homes in January 2024, which yielded incriminating documents and led to additional bank account freezes.

Published - October 26, 2024 09:09 am IST