ED Says Probe Into Former MLA P.V. Anvar’s Loan Case Points to Financial Irregularities

Malappuram: The Enforcement Directorate (ED), which is investigating the alleged loan misappropriation involving former MLA P. V. Anvar, said it has found evidence of financial irregularities connected to his business activities. The agency conducted searches at Anvar’s residences and business establishments in Malappuram on Friday.

The investigation is centred on a 7.5 crore rupees loan sanctioned by the Kerala Financial Corporation (KFC) to Malamkulam Constructions in 2015. The ED said that additional loans of 3.05 crore and 1.56 crore were later granted to Pee Vee Aar Developers, using the same collateral properties within a short period. According to the agency, the total became a non-performing asset (NPA) of around 22.3 crore rupees.

The ED said it has identified 15 bank accounts held in the names of various individuals suspected to be benamis, through which disputed transactions were carried out. Officials are now examining seized documents and digital records to identify the proceeds of crime, trace diversion of loan funds, understand the layering process and determine the scale of benami holdings.

According to the ED, initial findings show diversion of loan funds, the use of nominal shareholders and directors, and suspected benami ownership of properties. During the searches, Anvar reportedly admitted that he was the real beneficial owner of Malamkulam Constructions, even though the company’s documents listed his nephews and driver as owners. He also confirmed that the loans were used for the Pee Vee Aar (PVR) Metro Village township project.

Statements from Anvar’s associates indicated that documents were signed on his instructions, funds were diverted to related companies, and some cash collections were handled outside the official accounting system. The ED said it also found that buildings at PVR Metro Village were constructed by Malamkulam Constructions without proper approvals, and that proceeds of crime were used in the project.

ED officials said that searches at the premises Bis Manjeri LLP and PVR Metro Village showed large-scale construction and commercial activity, including schools, amusement parks, resorts, villa projects and apartment complexes. The agency said the evidence collected suggests that loan funds were transferred between related entities and used for purposes not approved by KFC. Documents, digital devices, financial records, sale agreements and property papers have been seized.

Statements recorded from KFC officials during the operation pointed to procedural lapses, failure to verify earlier mortgages and repeated use of the same collateral for fresh loans. The ED said the technical officer admitted that valuation reports were reused without new inspections, and the legal officer accepted that earlier encumbrances were missed.

The ED launched its investigation after the Kerala Vigilance and Anti-Corruption Bureau (VACB) registered a case regarding alleged loan misappropriation at the KFC Malappuram office. Last month, the agency recorded the statement of Murugesh Narendran, the complainant in the Vigilance case.