Leading Indian NBFC Manappuram Finance has stated that the Enforcement Directorate’s (ED) action against the company’s promoter, VP Nandakumar, had nothing to do with the business the company does. The company emphasised in a statement to the media that it was not a party to any wrongdoing and that the ED’s activities had no bearing on its business operations.
In relation to a money laundering case, the ED, which is in charge of upholding economic laws and preventing financial crime in India, has taken action against Nandakumar. The agency had taken possession of stock, homes, and gold worth Rs 68 crore (about $9 million) that belonged to Nandakumar and his family.
Manappuram Finance has highlighted that the company did not own the confiscated assets and that the ED’s actions had no effect on the company’s activities. The business reaffirmed its commitment to abiding by all legal and regulatory standards and stated that it would fully assist the ED in its inquiry.
Manappuram Finance has been a significant player in the Indian NBFC market, offering millions of consumers gold loans, microfinance, and other financial services. The business is well-established in rural and semi-urban areas and has led the charge in advancing financial inclusion in India.
In recent years, the NBFC industry in India has faced a number of difficulties, such as liquidity problems, regulatory changes, and greater competition. Manappuram Finance has achieved sustained growth in its commercial activities while effectively navigating these difficulties.
The latest ED action against VP Nandakumar, the promoter of Manappuram Finance, is unrelated to the company’s operations, and those operations are unaffected. Manappuram Finance will continue to offer its clients financial services while adhering to all legal and regulatory standards.