Muthoot Finance shares will be in focus on Monday after the Enforcement Directorate (ED) questioned its Managing Director, George Alexander Muthoot, in connection with a money-laundering investigation tied to an investor fraud case.
According to media reports, the Kochi zonal unit of the ED has registered a case under the Prevention of Money Laundering Act (PMLA), following multiple FIRs filed by the Kerala Police. The complaints claim that certain Muthoot Finance branch managers collected funds from investors by promising attractive returns ranging from 8% to 12% on fixed deposits (FDs) and non-convertible debentures (NCDs).
However, the collected funds were allegedly diverted to Srei Equipment Finance Limited, a company falsely presented as a sister concern of the Muthoot Group. Investors reportedly faced non-repayment of their funds upon maturity, leading to mounting concerns and legal action.
George Alexander Muthoot was summoned to the ED’s Kochi office, where his statement was recorded in connection with the ongoing investigation.
In the meantime, Muthoot Finance shares dropped 2.60% to Rs 3,165.00 on Friday. It has rallied 42.89% this year, so far.
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