Daijiworld Media Network – Kochi

Kochi, Sep 25: The Enforcement Directorate (ED) on Friday conducted searches at the premises of Arafa Gold and Diamond and the residences of its owner and partners in Kollam and Thiruvananthapuram in connection with an alleged bank loan fraud.

According to ED sources, searches were carried out at the company's headquarters and the residences of its owner and partners. The agency recently registered a case under the Prevention of Money Laundering Act (PMLA) based on a CBI probe into the alleged loan fraud.

The CBI had registered a case in August 2025 in connection with the alleged fraud.

ED officials said the company had initially availed a loan of more than Rs 17.5 crore from UCO Bank in 2022 for gold manufacturing and other purposes. The company later allegedly pledged properties as collateral and committed fraud in connection with the properties, resulting in a liability of nearly Rs 19.56 crore for the bank, officials said.

Searches were conducted at three locations — one in Kollam and two in Thiruvananthapuram.

Several jewellery shops operated by the firm are currently defunct, officials said. There was no immediate response from the company regarding the ED searches.