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The Enforcement Directorate searched 11 locations in Kerala and Tamil Nadu over alleged money laundering linked to BLM society.
The searches, conducted on November 4, 2026, targeted premises associated with R. Premkumar, founding member and de facto chairman and managing director of Bharath Lajhna Multi State Co-operative Society (BLM), and others. The action under the Prevention of Money Laundering Act (PMLA) comes amid an ongoing Kerala Crime Branch investigation into alleged diversion of public deposits.
Where Did the ED Conduct Searches?
According to ED sources, searches were carried out at least 11 locations across Kerala and Tamil Nadu, including premises in Kochi, Kozhikode and Chennai. The investigation concerns allegations that Premkumar misused his position to divert crores of rupees collected from public depositors into accounts belonging to his relatives for personal use.
The ED’s action follows allegations of financial irregularities involving the cooperative society, which operates across multiple southern states.
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What Led to the Criminal Investigation?
The police investigation originated from a complaint filed by a former BLM chief executive officer at Nadakkavu police station in Kozhikode, alleging physical assault by Premkumar and others. Although the complainant subsequently withdrew the complaint, the Crime Branch proceeded after reportedly identifying evidence of financial misappropriation.
An FIR was registered under Sections 316(5) and 318(2) of the Bharatiya Nyaya Sanhita, relating to criminal breach of trust and cheating. Investigators have reportedly examined 320 bank accounts connected to the alleged financial irregularities.
Why Was Premkumar Arrested Earlier?
The Kerala Crime Branch arrested Premkumar at his residence in Nungambakkam, Chennai, on October 29 and produced him before the Judicial First Class Magistrate Court in Kozhikode. He was granted bail shortly afterwards, following procedural lapses in his arrest. Police subsequently sought court permission to arrest him again.
After his release, another cheating case was registered against him in connection with allegations that a woman in Kothamangalam had been defrauded of ₹1.6 crore. The fresh complaint added to the ongoing investigation into the society’s financial dealings.
What Is Known About BLM Cooperative Society?
BLM was established in Chennai in 2006 as a housing cooperative society. It reportedly operates approximately 150 branches and has more than 15 lakh members across Kerala, Tamil Nadu and Puducherry. The society’s extensive membership and regional operations have brought attention to allegations involving deposits collected from the public.
However, BLM’s senior management has denied allegations of deposit fraud. The management maintains that the society possesses assets exceeding its financial liabilities towards depositors. The ED searches form part of the continuing examination of alleged money laundering, while the Crime Branch investigation remains focused on suspected misappropriation and related complaints. The allegations against Premkumar and the society remain subject to investigation.
