Manappuram Finance issues clarification on ED searches; says extending full cooperation

Manappuram Finance, whose premises were searched by the Enforcement Directorate, on charges of illegal collection of deposits, has issued a clarification on the same. The company said that it is extending its full support to the department. 

“The ED is conducting a search at our Registered Office. We are extending full cooperation to the department, including providing complete information sought by them. As the search is ongoing, we will be able to provide more information on its completion. Manappuram Finance Limited has always adhered to the best practices in corporate governance and compliances,” it said in a filing. 

The agency carried out searches at multiple locations on premises linked to the company in Thrissur in Kerala. The company’s headquarters and searches of promoter VP Nandakumar were also searched. 

ED has accused the company of illegal collection of deposits worth over Rs 150 crore from the public without Reserve Bank of India’s approval. They are also suspected of conducting large scale cash transactions without following KYC norms. 

The central agency also looked at documents and recorded statements of the employees. 

Following the reports of searches at Manappuram’s offices and premises, the shares plunged 4 per cent. The stock dipped 4.47 per cent and hit a low of Rs 123.85 on BSE. There were sell orders of 5,71,678 shares as opposed to buy orders of 4,75,854 shares at 11:18 am. 

(With inputs from Munish Pandey)

Also read: ED searches premises linked to Manappuram Finance, promoter VP Nandakumar’s residence