The Directorate of Enforcement (ED) conducted searches in Thrissur, Kerala, at 6 premises belonging to Manappuram Finance and its managing director V P Nandakumar. The investigation is related to allegations of money laundering from the illegal collection of deposits from the public. Hence ED has freezed the assets of V.P. Nandakumar, under PMLA, 2002 totalling to Rs 143 crore. The assets freezed includes 8 bank accounts, investment in listed shares and shares of Manappuram Finance. In addition, various incriminating documents evidencing money laundering and property documents of 60 immovable properties were also seized during the course of search for further investigation.

The NBFC clarified to the bourses today that V P Nandakumar has received an order of freezing his personal asset on 4 May 2023 under section 17 (1-A) of the Prevention of Money Laundering Act, 2002. These include 19,29,01,996 equity shares in the company held by him.

The company held a board meeting today, 5 May 2023, and noted the explanation given by V P Nadakumar, confirming that the issue pertained to a 10 year old matter of erstwhile proprietorship concern, Agrofarms (Magro) and was subjected to Regulatory scrutiny at that point of time and being updated to the Regulators at periodical intervals and that he is in touch with his legal advisors to remedy the situation.

The board also noted that the action of Enforcement Directorate has nothing to do with Manappuram Finance and has no impact on financial position/operations of the company. The company has intimated the stock exchanges the representation received from Nandakumar. The company has communicated the matter to regulators and will inform further developments as and when received on the matter. The board will continue to monitor the developments on the matter.

Manappuram Finance is one of India's leading gold loan NBFCs. The NBFC's consolidated net profit soared 50.3% to Rs 392.17 crore on 15.1% rise in total income to Rs 1,734.52 crore in Q3 FY23 over Q3 FY22.