NEW DELHI: The Enforcement Directorate on Friday searched premises linked to Arafa Gold and Diamond and the homes of its owner and partners in Kollam and Thiruvananthapuram in an alleged bank loan fraud case.
According to the agency sources, searches were conducted at the company’s headquarters and the residences of its owner and partners in Kollam and Thiruvananthapuram.
The central financial probe agency recently registered a case based on a CBI probe into the alleged loan fraud involving the company, the sources said. The case was registered under the Prevention of Money Laundering Act.
The CBI had registered a case in August 2025 in connection with the alleged fraud.
ED officials said the company had initially availed a loan of over ₹17.5 crore from UCO Bank in 2022 for gold manufacturing and other purposes.
The company later allegedly pledged properties as collateral and committed fraud in connection with the properties, resulting in a liability of nearly ₹19.56 crore for the bank, officials said.
Searches were conducted at three locations — one in Kollam and two in Thiruvananthapuram, officials said, adding that several of the firm’s jewellery shops are now defunct. There was no immediate response from the company over the ED searches.
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