Doha bank loan fraud: The Enforcement Directorate (ED) conducted raids at three locations in Kerala on August 28, uncovering evidence of a massive financial fraud involving a Kannur-based businessman. Ismail Chakkarath, the prime suspect, allegedly duped United Bank Limited in Doha, Qatar, of over ₹61 crore, as per ANI report.

The ED’s Kozhikode Sub-Zonal Office carried out the searches under the Prevention of Money Laundering Act (PMLA) and seized ₹3.50 lakh in cash and crucial documents linking Chakkarath to the international scam, as per ANI. 

The money-laundering case stems from an FIR filed by the crime branch and economic offences wing of the Kerala Police (Kannur and Kasaragod districts) on the allegations that Chakkarath, a resident of Thuvakkunnu in Kannur, was running a firm called Grant Mart Trading in Doha, as per PTI.

Investigators reveal that Chakkarath, a resident of Thuvakkunnu in Kannur city, secured a loan of QAR 30,643,204 (approximately ₹61.28 crore) from United Bank Limited, ostensibly to expand his Doha-based firm, Grant Mart Trading. However, he allegedly neither repaid the loan nor used it for its intended purpose, reported ANI.

The ED’s probe, initiated based on an FIR filed by the Crime Branch’s Economic Offences Wing in Kannur and Kasargod, has exposed a complex web of financial malpractice. Sources close to the investigation claim that Chakkarath diverted the loan amount to investments in Wayanad, Kerala, using benami transactions to conceal his involvement, as per ANI.

One transaction involving ₹2.02 crore for an immovable property purchase fell through, but the seller reportedly retained the funds. The ED has frozen 10 bank accounts linked to Chakkarath and his associates, where portions of their illicit gains were traced.

As the investigation unfolds, authorities are scrutinising Chakkarath’s extensive network and the full scope of his alleged financial crimes. Authorities said the case highlights the growing challenges of cross-border financial fraud and the need for enhanced international cooperation in combating such sophisticated schemes.