The Enforcement Directorate (ED) questioned George Alexander Muthoot, Managing Director of the Kerala-based Muthoot Group, on Friday, October 10, in connection with a money-laundering investigation linked to an alleged investor fraud case.
Questioning at ED’s Kochi office
Officials said the interrogation took place at the ED’s zonal office in Kochi. The agency has been examining financial transactions and fund flows related to complaints of investor losses in a scheme allegedly connected to entities associated with the group.
Probe under Prevention of Money Laundering Act
The inquiry is being conducted under the Prevention of Money Laundering Act (PMLA). Sources reported that Muthoot was asked to provide details of certain accounts and investments flagged during earlier searches and document reviews. The agency is also examining the trail of money linked to firms and individuals connected with the case.
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The probe stems from complaints filed by a group of investors who alleged that they were misled by certain companies promising unusually high returns. Preliminary inquiries suggested possible diversion of investor funds and irregularities in the manner in which deposits were managed.Â
The Muthoot Group, founded in 1887, is one of India’s oldest and largest business houses. Over the decades, it has grown from a small trading firm in Kerala into a diversified conglomerate with interests in finance, real estate, hospitality, and healthcare. Its main company, Muthoot Finance Ltd, is one of the country’s largest non-banking financial institutions, best known for providing gold-backed loans through a network that now extends across India and abroad.
The Muthoot Group has yet to issue a formal statement on the ED’s questioning.Â
