ED raids 11 places in Tamil Nadu’s Keralam for alleged money laundering linked to BLM cooperative

Security personnel deployed to one of the offices associated with R. Premkumar, founder member and de facto chairman and chief executive of BLM, in Kozhikode as ED raids progress on Wednesday. | Photo credit: K. Ragesh

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

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

The ED’s action under the Prevention of Money Laundering Act (PMLA) comes amid an ongoing investigation by the Kerala Crime Branch against Mr Premkumar.

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

Although the Crime Branch arrested Mr. Premkumar at his residence in Nungambakkam, Chennai, on October 29 and produced him before the First Class Judicial Court, Kozhikode, he was granted bail shortly thereafter, citing procedural lapses in his arrest. The police asked the court for permission to take him back into custody.

A police case

The police case stems from a complaint filed by the former BLM director general at the Nadakkavu police station in Kozhikode, alleging that Mr. Premkumar and several others were physically assaulted. Though the complaint was later withdrawn, the crime branch, after finding evidence of alleged misappropriation of funds, registered an FIR invoking Sections 316(5) (criminal breach of trust) and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 case of cheating was registered against Mr. Premkumar for allegedly duping a woman of ₹1.6 million in Kothamangalam.

The crime branch has reportedly scrutinized 320 bank accounts linked to the alleged fraud.

Founded in Chennai in 2006 as a housing society, BLM reportedly has around 150 branches and over 15 thousand members in Kerala, Tamil Nadu and Puducherry.

The company’s top executives have denied allegations of deposit fraud, arguing that BLM has assets worth more than its liabilities to depositors.

Published – November 4, 2026 11:30 AM IST