Kerala gold smuggling case: ED seizes gold worth Rs 2.51 cr of Malappuram jewellery house owner

The federal agency, in its statement, said that the action had been taken against Aboobacker Pazhedath, the promoter of Malabar Jewellery and Fine Gold Jewellery, both of which have their headquarters in Malappuram, Kerala, and one of the shareholders of Atlas Gold Super Markets Pvt. Ltd., Kozhikode.

The Enforcement Directorate (ED) on Wednesday announced that it had seized gold worth Rs 2.51 crore from a 'secret' chamber at the Malappuram-based jewellery house promoter's premises, who is an alleged beneficiary of Kerala's gold smuggling through a diplomatic bag' case.

The federal agency, in its statement, said that the action had been taken against Aboobacker Pazhedath, the promoter of Malabar Jewellery and Fine Gold Jewellery, both of which have their headquarters in Malappuram, Kerala, and one of the shareholders of Atlas Gold Super Markets Pvt. Ltd., Kozhikode.

The ED, NIA, and Customs are conducting separate investigations into the racket discovered on July 5, 2020, with the seizure of gold worth Rs 15 crore from the diplomatic baggage of the UAE Consulate at Thiruvananthapuram airport.

As per ED's probe, the Aboobaker Pazhedath of Malappuram was a beneficiary of the gold smuggling syndicate led by Sarith P S, Swapna Suresh, and Sandeep Nair and supported by IAS officer M Sivasankar (former principal secretary to the Kerala chief minister).

The statement added that the illegal gold confiscated by Customs on 05.07.2020, 3 kgs of gold belonged to Aboobacker Pazhedath.

According to the agency, Pazedath had 'admitted' that the three kgs of gold seized by the Customs belonged to him. Additionally, he admitted to smuggling six kgs of gold through the diplomatic baggage of the UAE consulate in the past. 

According to the ED, "His business firms raised money to buy the smuggled gold (Malabar Jewellery, Fine Gold & Atlas Gold Super Markets Pvt. Ltd.). Discreet enquiries have found that Aboobaker Pazhedath still indulged in gold smuggling-related activities through his firms."

Searches were conducted at the firms mentioned above and Pazhedath's residential premises, resulting in the recovery and seizure of 5.058 kg of gold worth Rs 2.51 crore 'secreted' in a chamber, along with Rs 3.79 lakh in Indian currency.

Apart from Nair and IAS officer Sivasankar, the ED earlier arrested Sarith and Suresh (ex-employees at the UAE consulate in Kerala), and a charge sheet was filed against them under the criminal sections of the Prevention of Money Laundering Act (PMLA), followed by a supplementary prosecution complaint (charge sheet).

The ED had approached the Supreme Court a few months ago, requesting that the case be transferred from Kerala to Karnataka, claiming that a free and fair trial would be impossible in the former state.    

(With inputs from PTI)