In a major crackdown on financial fraud, the Enforcement Directorate’s Kochi unit has arrested Anish Babu, a prominent cashew trader from Kollam, Kerala. Authorities accuse him of orchestrating a multi-crore scam that duped several cashew businessmen across the state.
The arrest comes after months of investigation into suspicious transactions linked to Babu’s firm. ED officials allege he lured investors with promises of high returns on cashew exports, only to vanish with their funds. Over a dozen complaints have surfaced, painting a picture of systematic deceit involving fake invoices and shell companies.
Sources within the ED reveal that raids conducted last week uncovered incriminating documents, digital trails, and unaccounted cash stashed in multiple locations. Babu’s operation allegedly siphoned off crores by inflating export figures and diverting payments meant for legitimate suppliers.
This case highlights the vulnerabilities in Kerala’s cashew industry, a cornerstone of the local economy employing thousands. Industry leaders have welcomed the arrest, calling for stricter oversight to protect small traders from such predatory schemes.
Anish Babu was produced before a special court in Kochi today, where he was remanded in custody for 14 days. The ED has frozen several bank accounts linked to the scam and is probing potential money laundering angles. Further arrests are anticipated as the investigation deepens.
Kerala’s business community is on edge, with calls for government intervention to safeguard the sector. As details emerge, this scandal could reshape trust in cashew trading networks across South India.