The Nadakkavu police in Kozhikode, Kerala, have registered a case against five persons, including T. Siddique MLA’s wife Sharafunnisa, as part of continuing investigation into a suspected financial fraud operated by SIS Banc, a partnership firm under Nidhi mutual benefit financial company.
Waseem Thondikkadan, managing director of the firm, his wife Rahila Banu, Moideenkutty Thondikkad and Shamna are the other four suspects in the cheating case filed by some investors from the Malabar region. Sharafunnisa, who was reportedly one of the former branch managers of the firm, is the fourth accused in the case. Others have been holding key positions in the director board.
Police sources said the partnership firm located at Nadakkavu reportedly mobilised huge investments, mainly fixed deposits, promising high interest returns to the depositors. They said complaints alleging financial irregularities worth ₹20 crore had already surfaced.
The firm was opened in Kozhikode city three years ago, with six branches in Kozhikode and Malappuram districts. As huge returns were offered, about 3,000 persons from various northern Kerala districts had reportedly joined the schemes. It was the closure of some of the branches and the restrictions imposed on deposit withdrawal that made the investors panicky and prompted them to approach the police for action.
SIT probe
Sources said the case would be handed over to a special investigation team (SIT) trained in probing economic offences if the local police receive more individual petitions. Five complaints had already come to the consideration of the police, the sources said.
To verify the petitions, the police on Friday carried out flash inspections in some of the branches and recovered a few banking documents for further scrutiny.
Case politically motivated: Siddique
Meanwhile, Mr. , who represents the Kalpetta Assembly constituency, alleged that the case registered against his wife was a politically motivated one on the basis of false propaganda.
Addressing reporters in Kozhikode on Friday, he claimed that his wife who had resigned from the post of branch manager in 2022 for professional reasons was not part of any alleged financial frauds or management activities there in the subsequent years.
Mr. Siddique also claimed that Communist Party of India (Marxist) activists were behind the latest complaints to tarnish his political image by misusing the police force. He said the issue would be fought legally as there was no evidence against his wife to support the allegations.
