'Baseless and misleading': Muthoot Finance denies money laundering allegations
What's the story
Muthoot Finance has denied allegations of money laundering and investor fraud against its Managing Director, George Alexander Muthoot. The company described the accusations as "false, baseless and misleading." The clarification comes after media reports had claimed that branch managers lured investors with higher returns on non-convertible debentures (NCDs) issued by Srei group companies.
Clarification
No commercial relationship with Srei companies: Muthoot Finance
Muthoot Finance clarified that its MD was summoned by the Enforcement Directorate (ED) for clarifications and factual information about the company's role in facilitating NCDs issued by Srei group companies. The company also dismissed claims that it misrepresented "Srei Cos" as a sister concern of the group. It emphasized there has never been any commercial or business relationship between Muthoot Finance and Srei Cos or its directors/promoters.
Distribution
Muthoot Securities was 1 of many brokers
Muthoot Finance clarified that Muthoot Securities was one of many SEBI-registered brokers distributing Srei companies' NCDs. This included bidding on stock exchange platforms and submitting cheques/application forms with collection banks. The company strongly refuted any claims or implications to the contrary, calling them inaccurate and baseless.