The premises of Manappuram Finance, which were raided by the Enforcement Directorate on suspicion of illicit collection of deposits, have been clarified. The company stated that it will provide the department with its complete support.
“The ED is searching our Registered Office,” We are extending full cooperation to the department, which includes providing all the requested information. As the search is in progress, we will be able to provide additional details upon its conclusion.
Manappuram Finance clarified ED searches and promised more information after the search.
“Manappuram Finance Limited has always adhered to the best corporate governance and compliance practices,” the company stated in a filing.
In Thrissur, Kerala, the agency conducteds inspections at multiple locations connected to the company. Additionally, the company’s headquarters and promoter vice president Nandakumar were searched.
The Enforcement Directorate has accused the company of illegally collecting deposits from the public in excess of Rs 150 crore without the sanction of the Reserve Bank of India. Additionally, they are suspected of undertaking large-scale cash transactions without adhering to KYC regulations.
The central agency also examined documents and recorded employee statements.
The shares dropped 4% after reports of searches of Manappuram’s offices and properties. On BSE, the stock fell 4.47 percent to a low of Rs 123.85. At 11:18 a.m., sell orders for 5,71,678 shares outnumbered purchase orders for 4,75,854 shares.