Kerala: ED to interrogate PV Anwar in Rs 12 crore KFC scam

Malappuram: Former Nilambur MLA PV Anwar could be in trouble if the ED manages to secure more evidence against him in a money laundering scam. The Directorate of Enforcement is preparing to issue a notice to Trinamool Congress leader PV Anvar, directing him to appear for interrogation in the money-laundering probe linked to the ₹12-crore Kerala Financial Corporation (KFC) scam.

On Friday, the ED raided Anvar’s residence at Othayi and several offices, including his park in Manjeri in Malappuram district.

However, Anwar has refuted all the charges made against him and said that the ED with the help of the state government is trying to implicate him in a false case.

Case details

According to the agency, KFC Malappuram had sanctioned ₹7.3 crore to Malamkulam Constructions in 2015. Loans of ₹3.05 crore and ₹1.56 crore were also granted to Pee Vee Aar Developers using the same collateral properties within a short span, resulting in a total loss of approximately ₹22.3 crore, reported PTI.

The ED stated that preliminary evidence points to diversion of the sanctioned funds, the use of nominal shareholders and directors, and suspected benami ownership of assets.

Following the raids, officials claimed that Anvar admitted to using the loan amounts for a large township project — Pee Vee Aar (PVR) Metro Village. They alleged that certain buildings in the project were constructed by Malamkulam Constructions Pvt. Ltd. without proper local approvals and that proceeds of crime were infused into these constructions. The ED initiated the probe under the Prevention of Money Laundering Act (PMLA) after the Kerala Vigilance and Anti-Corruption Bureau (VACB) recently registered a corruption case related to loan misappropriation at KFC’s Malappuram office.

Amid the investigation, Anvar dismissed allegations of black money, asserting that he had only taken multiple loans from KFC for construction purposes. Speaking to the media on Saturday, the TMC leader said he had borrowed a total of ₹9.5 crore from KFC, of which ₹1.5 crore was used to settle another loan and about ₹6 crore was repaid.

He said KFC was demanding a significantly higher amount towards the remaining loan, interest, and penalty, and claimed that he had proposed an amount for a one-time settlement.

But KFC rejected the offer, so I wrote to them asking how much they required for a one-time settlement. It was while waiting for their response that the ED action took place,” he said.

Anvar added that he had pledged the same property openly for multiple loans and that all related documents were with KFC.