KOCHI: The High Court has granted bail to former MLA MC Kamaruddin and TP Pookoya Thangal, who were arrested by the Enforcement Directorate (ED) in a gold investment fraud case. The fraud was related to Fashion Gold Jewellery in Cheruvathur, Kasaragod. Justice Bechu Kurian Thomas granted bail after observing that the duo, who were arrested by the ED on April 7, had been in custody for 155 days. The court also took into account the fact that they had been in custody for 110 days following their earlier arrest by the Crime Branch. The petitioners were the fifth and sixth accused in the ED case.

The case was that the accused formed four companies and committed a gold deposit fraud. The ED also alleged that Rs 20 crore was misappropriated from the collected amount. However, the court held that since the accused did not have the intention to cheat, the offence under the Indian Penal Code would not exist. Therefore, the offence under the Prevention of Money Laundering Act would not exist. The inability to return the deposit amount cannot be seen as cheating.
Action can be taken under the Buds Act for accepting deposits illegally. However, since this is not a scheduled offence, a case cannot be filed under the Prevention of Black Money Act. The court also observed that prima facie, such an offence cannot be considered to have been committed.
The fact that the trial is not likely to commence anytime soon was also taken into account for bail. Subsequently, both were granted bail on the condition of a bond of Rs 50,000 and two sureties of equal amount.