ED raids 11 locations in Keralam, Tamil Nadu over alleged money laundering linked to BLM cooperative society

The Enforcement Directorate (ED) on Wednesday (November 4, 2026) conducted searches at multiple locations in Keralam and Tamil Nadu in connection with an investigation into alleged money laundering involving the Bharath Lajhna Multi State Co-operative Society (BLM).

The central agency was raiding at least 11 locations in cities, including Kochi, Kozhikode and Chennai, linked to R. Premkumar, founding member and de facto chairman and managing director of BLM, and some others, according to ED sources.

The ED action under the Prevention of Money Laundering Act (PMLA) comes amid an ongoing Crime Branch probe in Keralam against Mr. Premkumar.

Mr. Premkumar allegedly misused his influence to divert crores of rupees collected from public depositors into his relatives’ accounts for personal use.

Though the Crime Branch arrested Mr. Premkumar at his residence in Nungambakkam, Chennai, on October 29 and produced him before the Judicial First Class Magistrate Court, Kozhikode, he was granted bail shortly afterwards, citing procedural lapses in his arrest. The police have sought the court’s permission to re-arrest him.

The police case stems from a complaint filed by a former CEO of BLM at the Nadakkavu police station in Kozhikode, alleging physical assault by Mr. Premkumar and a few others. Though the complaint was later withdrawn, the Crime Branch, having found evidence of alleged misappropriation of funds, went ahead and registered an FIR invoking Sections 316(5) (criminal breach of trust) and 318(2) of the Bharatiya Nyaya Sanhita against the accused.

After he was released on bail, a fresh cheating case was registered against Mr. Premkumar for allegedly defrauding a woman of ₹1.6 crore in Kothamangalam.

The Crime Branch has reportedly examined 320 bank accounts linked to the alleged scam.

BLM, which was started in Chennai in 2006 as a housing co-operative society, reportedly has around 150 branches and over 15 lakh members across Keralam, Tamil Nadu and Puducherry.

The society’s top managers have denied allegations of deposit fraud and claimed that BLM has assets worth more than its liabilities towards depositors.