On May 5, Manappuram Finance shares fell 14% in early trade, trading at Rs 103 on the BSE at 9:32 am. This came after the Enforcement Directorate (ED) froze assets worth Rs 143 crore of Kerala-based NBFC’s Manappuram Finance MD and CEO VP Nandakumar.

ED conducted raids in the firm as part of an investigation into a money laundering case.

In Aggregate, six premises in Thrissur, where the company is headquartered, were covered during Wednesday searches launches.

The case announced the allegations of money laundering through “illegal” deposit collection from the public.

During the investigation, ED said that the crime proceeds were “diverted and invested” by V P Nandakumar into immovable properties under his name, his spouse and children and into the Manappuram Finances shares.

Hence, ED froze V P Nandakumar’s assets under the Prevention of Money Laundering Act (PMLA), calculating Rs 143 crore. The frozen assets comprise deposits in eight different bank accounts, investments in listed shares, and the Manappuram Finance Limited shares, ED said.

Claiming about “evidence” on money laundering with large cash transactions amid public deposits by Nandakumar under proprietary firm Manappuram Agro Farms (MAGRO), without RBI approval, is recovered.

The deposits were “illegally” collected by VP Nandakumar at different branch offices of Manappuram Finance Limited through some of its employees.

ED alleges that when RBI detected and directed to return the depositor’s amount, Nandakumar told RBI that the depositors’ money was returned. Still, the ED investigation revealed that there is neither any evidence of Rs 53 crore repayment nor any KYC of the depositors.

ED said that the chief financial officer’s role of Manappuram Finance Limited and other suspected employees assisted in the offence of money laundering case are being investigated.