Searches by the Directorate of Enforcement reportedly uncovered 15 bank accounts held in the names of different individuals, alleged to be benamis of P.V. Anavar, through which suspicious transactions had taken place.
| Photo Credit: K K Mustafah
Businessman and former legislator P.V. Anvar on Thursday (January 08, 2026) appeared at the Kochi zonal office of the Directorate of Enforcement (ED) for being questioned in connection with an ongoing investigation into suspected money laundering linked to alleged fraudulent loan sanctions by the Kerala Financial Corporation (KFC) in 2015.
The enforcement agency had conducted search operations at multiple premises associated with Mr. Anvar and others in November 2025. At that time, the agency stated that the former legislator could not provide satisfactory explanations for the sharp increase in his assets from ₹14.38 crore in 2016 to ₹64.14 crore in 2021, despite declaring negative income during 2015-2020.
The searches reportedly uncovered 15 bank accounts held in the names of different individuals, alleged to be benamis, through which suspicious transactions had taken place. Incriminating documents and digital evidence, including sale agreements, financial records, property papers, multiple registers, and electronic devices, were seized during the operations.
Fund diversion
The searches were carried out at residential, business, and institutional premises linked to Malamkulam Constructions Pvt. Ltd., Pee Vee Aar Developers, Bis Manjeri LLP, the Malappuram branch of the KFC, and the residences of key individuals involved. The investigation pertains to loans amounting to ₹7.5 crore to Malamkulam Constructions and ₹4.61 crore to Pee Vee Aar Developers, sanctioned against the same collateral properties within a short span. This resulted in total Non-Performing Assets of approximately ₹22.30 crore. Preliminary evidence indicates diversion of sanctioned funds, the use of nominal shareholders and directors, and suspected benami ownership of assets, according to the ED statement.
The agency claimed that Mr. Anvar admitted to being the real beneficial owner of Malamkulam Constructions, despite the company being registered in the names of his nephews and driver. “He confirmed that the loan amounts were used for the large township project ‘Pee Vee Aar Metro Village.’ Statements from his associates revealed that documents were routinely signed at his instruction, funds were diverted to related entities, and certain cash collections were handled outside regular accounting channels,” the agency’s statement said.
It was also found that certain buildings in Pee Vee Aar Metro Village were constructed by Malamkulam Constructions Pvt. Ltd. without proper approvals from local or regulatory authorities, and proceeds of the crime were infused into the construction. Searches at the premises of Bis Manjeri LLP and Pee Vee Aar Metro Village revealed extensive construction and commercial activity, including schools, an amusement park, a resort, villa projects, and apartment blocks. Evidence collected suggests that loan proceeds were transferred between related entities and used for purposes unrelated to the sanctioned activities.
Statements from the KFC officials recorded during the operation revealed procedural lapses, non-verification of prior mortgages, and re-use of the same collateral for subsequent loans. The technical officer admitted that valuation reports were reused without fresh inspection, while the legal officer acknowledged that earlier encumbrances went undetected, the ED claimed.
Published – January 08, 2026 04:25 pm IST
