Gold lending lender Manappuram Finance, in its regulatory filing to exchanges on Friday, said its backer VPNandakumar has received a freezing order on his personal assets, including 19,29,01,996 equity shares in the company he owns.
The regulatory filing comes in the wake of ED’s decision to freeze the assets of Nandakumar, the company’s CEO and CEO, totaling Rs 143 crore, as part of the investigation under PMLA, 2002.
However, Nandakumar, in a letter to the Board of Directors, said that the DE’s visit has nothing to do with company affairs, but rather relates to a matter from 10 years ago related to a partner company that Manappuram Agro Farms (Lean) promoted. for him, who no longer exists.
The ED visit was based on a bad faith FIR filed by a person with a personal grudge against him and his family. The total value of the shares attached by ED is worth almost ₹2,000 crore, not around ₹140 crore as stated. The total amount of outstanding deposits referred to in the matter is less than ₹10 lakhs, which is held in an escrow account, he said.
Engaging in the non-financial services business of agriculture in Thrissur, Magro used to accept deposits from people residing in Valapad and its neighboring areas. She would pay interest on these deposits and use the funds thus raised in her primary farming business. The total amount of outstanding deposits as at 1 February 2012 was Rs 143.85 crore.
However, according to RBI communications in 2012, Magro stopped accepting, renewing and requesting deposits. Nandakumar said that he had raised around Rs 159.45 crore in 2012 through the sale of shares for repayment of deposit amounts and Rs 34.56 crore was repaid between 1 February 2012 and 16 February 2012. March 2012. The unclaimed balance of the deposits as of March 17, 2012 along with accrued interest was ₹119.18 crore. This was deposited into an escrow account with the Punjab National Bank at their branch in Paramekavu Devasom, Thrissur.
The RBI compiled a monthly report on the progress of the repayment of the deposits and the latest inspection report mentions that as of 30 September 2022, there was only ₹9.29 lakh remaining to be repaid, which was held in an escrow account. waiting to receive the claims of the relevant depositors. .
According to Nandakumar, Magro has never suspended or delayed payments to any of its depositors.
As of December 31, 2022, Magro has repaid the deposits to the tune of ₹143.76 crore and the total outstanding amount remaining in the escrow amount is only ₹9.24 lakh. This balance is outstanding only because certain depositors have not claimed their respective deposits.
RBI, SEBI and the Companies Registry have conducted their investigations separately and none of these regulators have made any adverse findings on the grounds of misappropriation of amounts collected from depositors, it added.