On Monday, the Kerala High Court dismissed a bail application filed by Manjeswaram Member of Legislative Assembly (MLA) MC Kamaruddin, arrested in a case of financial fraud. Kamaruddin, an Indian Union Muslim League (IUML) member, pleaded that he should be given bail, considering his health issues.
The state government opposed the bail plea, submitting that he was an accused in the case of cheating investors in a gold jewellery business involving crores of rupees. Dismissing the plea, the court directed the jail authorities to provide the accused medical assistance if required.
The IUML legislator was arrested on November 7 in connection with over many cases of alleged cheating registered against him based on complaints by investors in the gold jewellery business of which he was the chairman. Earlier, the High Court had refused to quash the First Information Report (FIR) registered against MLA Kamaruddin.
Kamaruddin was arrested by a Special Investigation Team, after 115 cases were registered against him in different police stations of Kasargod district.
TK Pookoya Thangal, another IUML leader, is also an accused in the case.Both of them ran the Fashion Gold Jewellery, headquartered in Kasargod. Investors complained that they were cheated of crores of rupees. The company owners had allegedly promised to share profits with them. Several investors were Gulf returnees who had put their life savings in the business. The jewellery group is estimated to have raised an amount of Rs 140 crore from more than 750 investors, many of whom were supporters of the IUML.
The jewellery showrooms were shut last year and the investors were allegedly not informed of it.
MLA Kamaruddin had at first claimed that the allegations were politically motivated and later said that he was deceived by partners. He claimed that his business crashed unexpectedly.
Several protests were held by investors demanding his arrest before the MLA was finally taken into custody in early November.
(With PTI input)