Kasaragod: Manjeshwaram MLA M C Kamaruddin of the Indian Union Muslim League (IUML) has been arrested over an investment fraud.

The arrest was registered on Saturday based on complaints from those who invested money in a jewellery chain in Kasaragod – Fashion Gold International – in which Kamaruddin is the chairman. “We have secured enough evidence to arrest him,” ASP Vivek Kumar said a little while before arresting Kamaruddin on Saturday.

The investors had claimed that Kamaruddin and jewellery director Pookoya Thangal, who is also a leader of the Indian Union Muslim League (IUML), cheated them of more than Rs 100 crore.

They were booked under Section 420 (cheating) of the Indian Penal Code after over two dozen complaints were received in the Chandera and the Kasaragod police stations.

The money was collected from 800 people to set up the jewellery chain. They were promised of a monthly dividend from the company’s profit.

The investors regularly received dividends till last year. They filed police complaints when they failed to get the payment.

The IUML had asked Kamaruddin to settle the dues. The patry said it had nothing to do with Kamaruddin’s financial dealings.

In the wake of police complaints, the United Democratic Front (UDF) had removed Kamaruddin as its ditsrict chairman.

Kamaruddin was elected to the assembly from Manjeswaram constituency in Kasaragod ditsrict in the bypoll held in October last year.

  m c khamarudeen