Overview
- The Enforcement Directorate on August 2 invoked the Foreign Contribution Regulation Act and FEMA against Kunhahmed Musliyar Memorial Trust and chairman Ibrahim Ahmad Ali for alleged illicit fund inflows.
- Investigators seized ledgers, cash books and a hard disk during July 31 searches at two Kasargod locations to trace the routing of over ₹220 crore received since 2021.
- The ED alleges the trust recorded the entire sum as “unsecured loans” from Ali despite lacking any loan agreements, interest terms or repayment schedules.
- Probe documents state the funds originated from UAE-based Universal Lubricants LLC and that the unregistered trust did not use a designated FCRA bank account for these inflows.
- Authorities found ₹2.49 crore accepted in cash and part of the foreign financing used to purchase agricultural land, both flagged as contraventions of FEMA and FCRA rules.