ED searches Arafa Gold premises in Kollam, Thiruvananthapuram in alleged bank loan fraud
According to ED sources, searches were conducted at the company’s headquarters and the residences of its owner and partners in Kollam and Thiruvananthapuram
The Economic Intelligence Unit (ED) carried out searches at the premises of Arafa Gold and Diamond, as well as the residences of its owner and partners, in Kollam and Thiruvananthapuram, Kerala, on September 25, 2026, according to officials. The ED was investigating an alleged bank loan fraud, with sources indicating that the company had registered a case based on a Central Bureau of Investigation (CBI) probe.
The allegations arose following the CBI registering a case in August 2025, linked to the fraud. In 2022, Arafa Gold had taken out a loan of more than ₹17.5 crore from UCO Bank for gold manufacturing and other purposes. The company then allegedly pledged properties as collateral and committed fraud, leading to a liability of nearly ₹19.56 crore for the bank, officials stated.
Three locations were searched, with one in Kollam and two in Thiruvananthapuram. Several of the firm's jewellery shops are now closed, officials added. The company did not provide an immediate response to the ED searches.
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