Kerala: Police arrest IUML MLA in series of cheating cases

The MLA is the Chairman of Fashion Gold Jewellery Group and it is alleged that he had cheated hundreds of investors of the group amounting to over 100 crore.

Partners of the group include Muslim Scholar Pookoya Thangal.

Police sources said they would also arrest the Group's Managing Director Pookoya Thangal sooner than later.

Police sources said the arrest was made, after interrogating the MLA in the morning in connection with four cheating cases registered under Section 420 of the Indian Penal Code, which deals with cheating and dishonesty, at Chanthera police station.

The police and the ruling Left Democratic Front Government have been facing serious criticism for shying away from the MLA's arrest despite as many as 115 cases registered in various police stations against the Jewellery group and its promotors including Kamaruddin.

Scores of investors, including league supporters, had invested in the group, mainly because of their faith in him as a league leader and a Muslim scholar. Police sources said the group had sold properties and reinvested the money elsewhere.

According to ASP Vivek Kumar, heading the investigation, police have already found the MLA guilty of cheating investors.

However, there are many more investments made by the group. The investigating team is probing diversion of funds, the sources said.

Consequent to the MLA's involvement in the case, the IUML leadership had in early September removed Kamaruddin from the Chairmanship of the Kasaragod District Commitee of United Democratic Front.

The IUML leadership had asked the MLA to submit a detailed statement of the liabilities and his worth. The party had given six months to the MLA to settle the cases by making refunds to the investors by selling out properties of the jewellery group. However, most of its properties including stock of gold and land were already sold and the  funds were diverted.

The GST department had also issued notice to the group for evasion of tax and demanded payment of dues with penalty.

The MLA's plea in the High Court to treat the case as a civil matter has been set aside.

Kamaruddin's arrest is likely to have political repurcussions in the backdrop of CPI(M)  facing serious political setbacks on account of  many cases including gold scam, life mission and import of Quran.