Manappuram Finance shares plummeted on Thursday after the Enforcement Directorate (ED) attached assets worth Rs 143 crore belonging to the non-banking financial company. The move came as part of an ongoing investigation into alleged violations of the Prevention of Money Laundering Act (PMLA).
The ED, which is the financial investigation agency under the Ministry of Finance, attached the assets, which included land, buildings, and gold jewellery, as part of their probe into the company's affairs. The agency alleges that Manappuram Finance had engaged in money laundering activities and had made transactions with entities that were not disclosed to the authorities.
Following the attachment of the assets, Manappuram Finance's shares fell by over 5% on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) during morning trade. The company's shares closed at Rs 160.50 on the BSE, down 4.74%, and at Rs 160.55 on the NSE, down 4.83%.
Manappuram Finance, which is headquartered in Kerala, is a non-banking financial company that offers gold loans, microfinance, and housing loans. The company has been in operation for over 25 years and has a customer base of over 4 million.
The ED's move to attach the assets has caused concern among investors and shareholders, with many expressing uncertainty about the company's future. The company, however, has stated that it is cooperating fully with the ED's investigation and that it is confident that the matter will be resolved soon.
This is not the first time that Manappuram Finance has come under scrutiny from the authorities. In 2011, the company was investigated by the Kerala Police for alleged irregularities in its gold loan business. The company, however, denied any wrongdoing and the case was eventually closed.
The ED's action against Manappuram Finance is part of a wider crackdown on financial crime in India. The agency has been investigating a number of high-profile cases in recent years, including the alleged fraud at Punjab National Bank involving diamond merchant Nirav Modi.
