The Enforcement Directorate searched 11 locations across Kerala and Tamil Nadu on November 4, 2026, in a money laundering investigation involving Bharath Lajhna Multi State Cooperative Society and its founder R Premkumar. The PMLA probe follows a Kerala Crime Branch investigation into alleged diversion of depositors' funds to relatives' accounts. Investigators have examined approximately 320 bank accounts linked to suspected irregularities. BLM has denied deposit fraud allegations and maintained that its financial obligations are being met.
ED Raids 11 Locations in Kerala and Tamil Nadu Over BLM Cooperative Society Money Laundering Case
On Thursday, the Enforcement Directorate carried out searches at eleven sites in Kerala and Tamil Nadu. The searches were related to a suspected money laundering case involving Bharath Lajhna Multi State Cooperative Society and its promoter member R. Premkumar.
On November 4, 2026, the Enforcement Directorate (ED) stepped up a money laundering case against BLM Cooperative Society. It also raided the homes of R. Premkumar and other people. The investigation is linked to a suspected diversion of deposits.
The searches were carried out under the Prevention of Money Laundering Act (PMLA) following the Kerala Crime Branch’s probe into alleged irregularities in the cooperative society.
ED Searches 11 Locations Across Kerala and Tamil Nadu
Investigators carried out searches at 11 locations in Kerala and Tamil Nadu, including areas in Kochi, Kozhikode and Chennai, the Enforcement Directorate (ED) said. Premkumar, a founder member and the de facto chairman and managing director of Bharath Lajhna Multi State Cooperative Society (BLM), was searched at sites connected to him.
The investigators said Premkumar is suspected of misusing his position to divert crores of rupees collected from depositors into accounts held by his relatives for personal gain. The allegations are tied to the activities of a cooperative society operating in several southern states. These latest searches are part of an investigation into suspected money laundering and the improper handling of depositors' funds.
Kerala Crime Branch Investigation and 320 Bank Accounts
A complaint was filed at the Nadakkavu police station in Kozhikode by a chief executive officer of the BLM. This complaint led to an investigation, according to sources. The complainant said that Premkumar and others had physically assaulted him. Later, the complaint was withdrawn. Still, the Kerala Crime Branch found signs of misappropriation. So the investigation went on.
An FIR was registered against the accused under Sections 316(5) and 318(2) of the Bharatiya Nyaya Sanhita (BNS). These sections deal with cheating and criminal breach of trust. Investigators looked into 320 bank accounts linked to the alleged irregularities. Their findings have brought attention to the society’s financial activities and how it is managed.
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R. Premkumar's Arrest and Additional Cheating Complaint
Kerala Crime Branch arrested a 41-year-old man named Premkumar from his home in Nungambakkam, Chennai, on October 29, 2026. He was taken to the Judicial First Class Magistrate Court in Kozhikode. He was quickly released on bail because there were mistakes in how he was arrested. Later, the police asked the court if they could arrest him again.
After he was set free, another case of cheating was filed against him. He is accused of cheating a woman from Kothamangalam out of ₹1.6 crore. This new case has brought attention to the activities of the society. However, the charges are still not. Are still going through the court system.
BLM Cooperative Society's Operations and Management Response
BLM was founded in 2006 as a housing society in Chennai. It has one hundred fifty branches and more than fifteen lakh members. BLM operates in Kerala, Tamil Nadu, and Puducherry. Because of this reach, the investigation matters a lot to both members and public depositors who are linked to BLM.
Still, senior management of BLM denied any claim of deposit fraud. They say that BBLM's assets are larger than its debts to depositors. The searches carried out by the Enforcement Directorate are the start of the money‑laundering case that involves BLM Cooperative Society. Meanwhile, the Kerala Crime Branch is looking into the alleged misappropriation and other complaints.
What happens next will hinge on how the searches, investigations, and later court actions turn out. At present, there is no evidence that Premkumar or BLM is at fault. Follow Sprouts News for the latest updates on the ED investigation and developments in the alleged financial fraud.
