ED raids Arafa Gold offices, owner's homes in Kollam and Thiruvananthapuram
The ED searched Arafa Gold and Diamond premises and residences in Kollam and Thiruvananthapuram over an alleged bank loan fraud.
The Enforcement Directorate carried out searches on Friday at the premises of Arafa Gold and Diamond as well as the residences of its owner and partners in Kollam and Thiruvananthapuram, in connection with an alleged bank loan fraud.
Officials said the operation covered three locations — one in Kollam and two in Thiruvananthapuram — including the company's headquarters.
The agency registered the case under the Prevention of Money Laundering Act after a Central Bureau of Investigation probe into the alleged fraud. The CBI had filed its case in August 2025.
According to officials, the company had taken a loan of more than ₹17.5 crore from UCO Bank in 2022 for gold manufacturing and other purposes. It later allegedly pledged properties as collateral and committed fraud in connection with those properties, leaving the bank with a liability of nearly ₹19.56 crore.
Several of the firm's jewellery shops are no longer operational, officials added. There was no immediate response from the company regarding the searches.