BLM founder and chairman Prem Kumar, who was arrested by the Crime Branch in connection with a financial complaint, was granted bail by the Kozhikode Judicial First Class Magistrate Court. The court granted bail after accepting the defence’s argument that the police had failed to follow the mandatory legal procedures during the arrest.
The defence argued that the reasons and circumstances for the arrest were not provided in writing and that the arrest details were not formally communicated to any close relative or friend. The court accepted these arguments and observed that the prescribed legal procedures had not been followed.
The Crime Branch has alleged that financial irregularities amounting to more than Rs 1,000 crore took place in connection with BLM. The case was initially registered by the Nadakkavu police in Kozhikode following a complaint filed by the company’s former CEO, Naveen.
A Crime Branch team arrested Prem Kumar from Chennai on Thursday night and brought him to Kozhikode by road.
Meanwhile, Prem Kumar denied the allegations, describing the case as fabricated and assuring investors that there was no need for concern. He alleged that a conspiracy involving four or five people had been orchestrated against him. BLM representatives also held a press conference in Kozhikode, denying allegations of financial irregularities or investment fraud.
In a separate development, the Kothamangalam police in Ernakulam district registered another case against BLM based on a complaint filed by Sonia, a former employee of the company. She alleged that Rs 1.60 crore was collected from her by falsely claiming that the accused was the company’s chairman.
Prem Kumar’s arrest has also triggered a political controversy in Tamil Nadu. The controversy centres on his meeting with Tamil Nadu Chief Minister Vijay in July, alongside the directors of a private television channel.
Leader of the Opposition Udhayanidhi Stalin questioned the alleged connection between the Chief Minister and a person facing financial fraud allegations. He also demanded investigations by the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) and the Serious Fraud Investigation Office (SFIO).
However, the private television channel clarified that Prem Kumar had no association with its Tamil-language division.
