Kerala High Court Issues Notice On Plea Seeking CBI Probe Into Alleged Al-Muqtadir Gold Scam Claiming Fraud Of ₹1,000 Crore

Justice P V Kunhikrishnan issued notice on the plea and directed the respondents to get instructions.

The petitioner society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 claims its members collectively lost nearly ₹50 crore to fraudulent investment schemes run by the jewellery group. The petition states that the overall fraud may exceed ₹1,000 crore, affecting thousands of investors in Kerala, Mumbai, and even the Gulf.

According to the petition, the group led by founder and CEO Mohammad Manzoor Abdul Salam lured customers by advertising discounted gold ornaments, waiver of making charges, and promises of high returns. Several agreements and memoranda of understanding were executed, assuring delivery of gold or repayment with bonuses.

However, customers allege that after collecting deposits, the group failed to deliver the promised gold or returns. The petitioner accuses the promoters of deliberately exploiting religious sentiments, branding the schemes as “HALAL business” and enlisting the support of religious leaders to lend credibility.

The writ petition highlights that advertisements for these schemes appeared prominently on the front pages of major Malayalam and national dailies, featuring endorsements from politicians, celebrities, and community leaders.

The petitioner cites at least 81 FIRs registered across Kerala, including 55 cases at the Fort Police Station and 23 at the Cantonment Police Station in Thiruvananthapuram. Charges have been booked under the Bharatiya Nyaya Sanhita (BNS) and the Indian Penal Code (IPC), including provisions relating to cheating, fraud, and criminal breach of trust.

Additionally, offences have been registered under the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019 and the Kerala Protection of Interests of Depositors in Financial Establishments Act, 2013. Several cheque bounce cases under the Negotiable Instruments Act, 1881 are also pending.

The petition further points out reports of large-scale tax evasion by the group, with the Income Tax Department allegedly uncovering ₹380 crore in evaded taxes, including ₹50 crore siphoned overseas.

Despite the scale of the scam, the petition alleges that the state police have shown “lethargy” in pursuing the case. No effective steps have reportedly been taken to attach properties or trace funds allegedly diverted abroad.

The petition seeks urgent intervention of the CBI (7th respondent) and Interpol (through the National Central Bureau) to issue Red Corner and Silver Notices against the absconding CEO. It also requests cancellation of his passport under the Passports Act, 1967.

The petitioners argue that only a central probe can uncover the full extent of the conspiracy, trace assets abroad, and restore confidence among victims. The plea draws parallels with the Saradha Chit Fund Scam, in which the Supreme Court had transferred investigation to the CBI citing inter-state and international ramifications.

Case Title: Niyama Sahaya Samithi v The Union of India and Ors.

Case No: WP(Crl) 1138/ 2025

Council for the Petitioners: Kurian Antony Mathew, Arun Thomas, Veena Raveendran, Karthika Maria, Anil Sebastian Pulickel, Mathew Nevin Thomas, Leah Rachel Ninan, Shinto Mathew Abraham, Karthika Rajagopal, Aparnna S, Noel Ninan Ninan, Adeen Nazar, Arun Joseph Mathew, Santhosh Mathew(Sr.)

Counsel for Respondents: O M Shalina(Deputy Solicitor General), Sreelal N Warrier (SC- Central GST), P G Jayashankar, Jose Joseph