Accused in Popular Finance scam in Kerala amassed property using money of depositors, ED tells special court

The exact trail of utilisation of funds was not divulged by the accused during the interrogation and hence the custodial interrogation of the two accused was essential, the agency argues

Thomas Daniel, managing partner of the Popular Finance Group, purchased properties in Kerala, Tamil Nadu, Karnataka and Andhra Pradesh worth several crores of rupees using the money of depositors, the Enforcement Directorate (ED) told the special court for Prevention of Money Laundering Act cases here on Wednesday. The other accused in the case is his daughter and company chief executive officer Rinu Mariam Thomas.

The payments for the purchase of holdings were made through cheque, bank transfer, demand draft and cash. All the money came from the public deposits in the Popular Finance bank accounts. The exact trail of utilisation of funds was not divulged by the accused during the interrogation and hence their custodial interrogation was essential, the agency argued.

The accused cheated the depositors and utilised their money for amassing wealth. It became evident that the affairs of the group were entirely controlled by Mr. Daniel. The Konni police had reported that the accused cheated around 3,000 depositors to the tune of ₹1,000 crore, it submitted.

Planning and deception

The accused, according to the agency, also indulged in money laundering activities. It appeared that the accused had the tendency to commit economic fraud with immaculate planning and use of deception and cheating, the agency submitted.

During the interrogation, according to the agency, Mr. Daniel admitted that he became the director of an Australian company in 2003. However, he stated that he had not invested any capital in it or received any property out of it. The statements of the accused need to be examined, the agency submitted.

Though the agency requested the custodial interrogation of the accused for six more days, the court refused and remanded them in judicial custody.

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