Kochi, Oct 10 (PTI) The Enforcement Directorate (ED) on Friday questioned George Alexander Muthoot, the managing director of the Kerala-based Muthoot Group, in a money-laundering case linked to an investors fraud case, official sources said.

The Kochi zonal unit of the ED has filed a case under the Prevention of Money Laundering Act (PMLA), taking cognisance of a clutch of FIRs lodged by the Kerala Police.

The police complaints allege that the accused, primarily Muthoot Finance branch managers, lured investors with the promise of returns in the range of 8 to 12 per cent on certain fixed deposits and non-convertible debentures (NCDs), but "diverted" the funds to a company named Srei Equipment Finance Limited.

This company was "misrepresented" as a sister concern of the group, the sources said.

Due to this, the investors faced non-repayment of funds upon maturity and hence, were cheated, they added.

The ED had summoned Muthoot to depose at its office here and recorded his statement in the case, the sources said. PTI NES RC

Muthoot Group MD questioned in a money laundering probe over alleged diversion of investor funds. Investigation concerns alleged inducement of investors into fixed deposits and non-convertible debentures with promised returns, followed by alleged diversion of collected funds to Srei Equipment Finance Limited after representing it as a group affiliate, producing non-repayment on maturity. The Enforcement Directorate registered a case under the Prevention of Money Laundering framework based on police FIRs, summoned the group's managing director and recorded his statement as part of the inquiry.