Chief Of Congress-Allied Kerala Group Arrested In Extortion Case

The Kerala Police have arrested the national president of the Congress-allied Kerala Pravasi Association for his alleged involvement in an extortion racket that used forged Enforcement Directorate (ED) notices to target institutions.

Rajendran Vellappalath, who heads the Kerala Pravasi Association-an ally of the United Democratic Front (UDF)-was intercepted and arrested by a Special Investigation Team (SIT) from Nedumbassery in Ernakulam.

Police suspect Vellappalath led an organized syndicate that sent fake ED notices to various organizations, falsely accusing them of money laundering. The gang would then allegedly offer to resolve the "probe" in exchange for hefty sums of money.

The racket came to light during an investigation into an extortion attempt targeting the Indian Cooperative Credit Society Limited (ICCSL), which operates across five states. The SIT is now examining whether other major institutions in Kerala and across India fell victim to the same syndicate. 

How The Racket Was Busted

The case was set in motion by a formal complaint lodged by Meenu John, Chief Executive Officer of the ICCSL, headquartered at East Fort in Thrissur.

According to the FIR, they received a communication on October 13, which was dated October 5, purportedly issued by the Enforcement Directorate's Delhi Zonal Office-II.  The forged communication claimed to have been issued by Arvind Kumar Singh, Assistant Director (PMLA), and carried an official-looking reference number. 

The notice sought documents and information from the cooperative society under the guise of an investigation into financial irregularities, including money laundering.

However, investigators say the entire exercise was part of a scheme to impersonate ED officials, obtain confidential information, and extort money from the institution.

According to the complaint, the envelope carrying the notice also has two telephone numbers. When contact was established, individuals on the other end indicated that the "money laundering probe" could be permanently settled if the cooperative's top management agreed to negotiate and make payments through those specific channels.

Suspicious of the communication, the cooperative society approached the probe agency's actual  zonal office in Delhi to independently verify the notice. The agency confirmed that no such notice was issued. 

Following the verification, ICCSL CEO Meenu John approached the police and filed a complaint on November 2. 

The case was registered under three provisions of the Bharatiya Nyaya Sanhita (BNS) - Section 308 (extortion), Section 319(2) (cheating by personation), and Section 340(2) (fraudulent or dishonest use of a forged document or electronic record as genuine). 

The FIR records that the suspected offences occurred between October 13 and November 2.

While the FIR initially listed the accused as "unknown", the subsequent probe by SIT led to the tracking of the digital and physical trail, leading to the high-profile arrest of Rajendran Vellappalath at Nedumbassery.

Police Suspect Much Larger Network

What initially appeared to be an isolated incident of extortion has now snowballed into an investigation into a suspected nationwide fraud network. The police suspect that multiple establishments may have fallen prey to the syndicate.

Investigators are currently examining whether Rajendran coordinated the operation, the possible involvement of other individuals, and whether money was collected from other institutions targeted through similar notices.

Political Affiliations In Focus

The arrest has also brought Rajendran's political associations into focus. Rajendran used to participate in political programmes and campaign journeys led by Kerala chief minister VD Satheesan (then Opposition leader) during the recent Assembly election campaign.

His arrest in the case is likely to trigger political ire over the UDF and Congress's association with the organisation and its leadership.

However, investigators have not yet found evidence linking the leadership of the Congress party or the UDF coalition to the alleged criminal operations.