On August 28, 2024, the Enforcement Directorate (ED) conducted a series of raids in Kerala, uncovering a significant financial fraud case involving a Kannur-based businessman. This operation is part of a larger investigation into a massive scam where Ismail Chakkarath, the main suspect, allegedly defrauded United Bank Limited in Doha, Qatar, of over ₹61 crore.
What Happened?
The ED’s Kozhikode Sub-Zonal Office led the raids under the Prevention of Money Laundering Act (PMLA). During these raids, officials seized ₹3.50 lakh in cash and crucial documents linking Chakkarath to this international fraud.
Background of the Case
The case began with an FIR filed by the crime branch and the economic offences wing of the Kerala Police from Kannur and Kasaragod districts. It alleges that Ismail Chakkarath, a resident of Thuvakkunnu in Kannur, was involved in running a company named Grant Mart Trading in Doha.
Chakkarath reportedly secured a loan of QAR 30,643,204, which is approximately ₹61.28 crore, from United Bank Limited. This loan was supposedly for expanding his Doha-based business. However, it is alleged that Chakkarath neither repaid the loan nor used the funds as intended.
Investigation Findings
The ED’s investigation, which was spurred by the FIR, has revealed a complex network of financial wrongdoing. According to sources close to the investigation, Chakkarath diverted the loan money into various investments in Wayanad, Kerala, using false names and transactions to hide his involvement.
One notable transaction involved ₹2.02 crore intended for purchasing immovable property. Although this deal did not go through, the seller reportedly kept the funds. In response, the ED has frozen 10 bank accounts linked to Chakkarath and his associates, where portions of the illicit funds were traced.
Ongoing Investigation
As the investigation continues, authorities are examining Chakkarath’s extensive financial network and the full extent of his alleged crimes. This case highlights the increasing challenges posed by cross-border financial fraud and underscores the need for stronger international cooperation to tackle such sophisticated schemes.
