ED raids in Chennai targeted the home and offices of businessman Prem Kumar on November 4 as part of a probe into alleged illegal money transfers linked to a multi-state housing cooperative, Dinamalar reported. Searches were conducted at 11 locations in Chennai and Kerala, including the cooperative’s headquarters in Anna Nagar, another office in Koyambedu and Kumar’s residence in Virugambakkam.
Prem Kumar, 58, is from Kerala and is associated with Bharat Lajna Multi-State Housing Cooperative, which operates 155 branches across Kerala, Tamil Nadu and Puducherry. According to the report, the cooperative records annual transactions of about Rs 162 crore. Kumar served as the organisation’s chairman from 2006 to 2016.
The searches follow a case registered by the Economic Offences Wing police in Kozhikode, Kerala. Dinamalar reported that the police had alleged fraud of more than Rs 5,000 crore through the cooperative. Kumar was arrested in Chennai a few days before the searches and taken to Kerala, but was subsequently released by a court, according to the report.
The Enforcement Directorate is investigating a separate complaint alleging that Kumar was involved in illegal money transfers. The agency’s searches covered the cooperative’s head office in Anna Nagar, the businessman’s office in Koyambedu and his home in Virugambakkam. Locations in Kozhikode, Kochi and Thrissur were also searched, taking the total number of premises reported to 11.
The case places a multi-state housing cooperative at the centre of a financial investigation spanning several jurisdictions. Such institutions can operate through extensive branch networks, making the roles of state police, economic-offence investigators, courts and central financial-enforcement agencies significant in determining the scope of any alleged irregularities. The supplied report does not provide details of the specific transactions under investigation or the identities of affected depositors or members.
Kumar’s lawyer, Gopalakrishnan, disputed the action. He said the Kerala police had produced Kumar before a court after arresting him, but the court had refused to send him to prison. The lawyer also said the searches were illegal because no irregularities had been proved.
The allegations remain subject to investigation and legal proceedings. The report does not state whether the Enforcement Directorate made any arrests during the searches, seized documents or digital devices, or quantified assets connected to the probe. Further proceedings by the investigating agencies and the courts will determine the next stage of the case.
