ED searches Arafa Gold premises in Kollam, Thiruvananthapuram in alleged bank loan fraud

The ED on Friday (September 25, 2026) conducted searches at the premises of Arafa Gold and Diamond and the residences of its owner and partners in Kollam and Thiruvananthapuram, Keralam, in connection with an alleged bank loan fraud, officials said.

According to ED sources, searches were conducted at the company’s headquarters and the residences of its owner and partners in Kollam and Thiruvananthapuram.

The ED recently registered a case based on a CBI probe into the alleged loan fraud involving the company, sources said.

The case was registered under the Prevention of Money Laundering Act (PMLA).

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

ED officials said the company had initially availed of a loan of over ₹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 ₹19.56 crore for the bank, officials said.

Searches were conducted at three locations – one in Kollam and two in Thiruvananthapuram, officials said.

Several of the firm’s jewellery shops are now defunct, they said.

There was no immediate response from the company over the ED searches.