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ED Raids Arafa Gold Premises, Residences in Loan Fraud Probe
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News18•25-09-2026, 11:30
ED Raids Arafa Gold Premises, Residences in Loan Fraud Probe
- •The Enforcement Directorate (ED) conducted searches at Arafa Gold and Diamond premises and residences of its owner and partners in Kollam and Thiruvananthapuram.
- •The raids are connected to an alleged bank loan fraud, with the ED registering a case under the Prevention of Money Laundering Act (PMLA).
- •The CBI had previously registered a case in August 2025 regarding the alleged fraud.
- •Arafa Gold reportedly availed a loan of over Rs 17.5 crore from UCO Bank in 2022 for gold manufacturing.
- •The company allegedly pledged properties as collateral and committed fraud, leading to a liability of nearly Rs 19.56 crore for the bank.
Key Questions Answered
The Enforcement Directorate conducted searches at the headquarters and residences linked to Arafa Gold and Diamond in Kollam and Thiruvananthapuram as part of a money laundering investigation into an alleged bank loan fraud.
Officials stated that the company initially availed a loan of over Rs 17.5 crore from UCO Bank in 2022 for gold manufacturing and other purposes before committing fraud with the pledged collateral properties.
The alleged fraud involving pledged properties resulted in a total financial liability of nearly Rs 19.56 crore for the bank.