Published Nov 03, 2026 | 1:40 PM ⚊ Updated Nov 03, 2026 | 2:23 PM
BLM chairman R Premkumar
Synopsis: The Keralam Crime Branch probe into the alleged financial fraud involving BLM has found a complex network of transactions involving luxury properties, resorts, companies, and family-linked entities. The investigation has brought under scrutiny 300 acres in Kancheepuram, an alleged ₹16-crore transfer to Thamizhaga Cable TV, and transactions linked to Ragam Theatre, Brios Finvest, and Vibe Resort. Investigators have identified more than 320 bank accounts and are tracing the money trail and the role of other individuals.
The Kerala Police Crime Branch investigating the Bharath Lajhna Multi-State Housing Co-operative Society’s (BLM) activities has found a wide web of alleged financial irregularities, fund diversions, and deception across Keralam, Tamil Nadu and Puducherry.
The Economic Offences Wing (EOW) of the Kozhikode Crime Branch arrested BLM chairman R Premkumar in Chennai on Thursday, 29 October, in connection with the alleged multi-crore financial fraud. Citing procedural lapses and the accused’s health condition, the Kozhikode Judicial First Class Magistrate Court granted him bail on Friday, 30 October. But the Kerala Police are continuing their investigation, and a fresh cheating case has been registered against Premkumar for allegedly defrauding a woman of ₹1.6 crore in Kothamangalam.
The society claims to have 15 lakh members across Keralam, Tamil Nadu and Puducherry. BLM was preparing to open 20 additional branches in Tamil Nadu when Premkumar was arrested. The society had already established around 130 branches in Keralam. It also has claimed that it has ₹850 crore in deposits, though the police say the amount could be significantly higher.
According to the Kozhikode Crime Branch, the alleged scam involves thousands of investors, a network of agents and people who allegedly helped BLM present a credible face.
South First accessed details of the Crime Branch investigation and spoke to BLM agents, former directors and investors to piece together how the society expanded, how it attracted public money and how its operations came under the scanner.
In Keralam, multiple First Information Reports (FIRs) have been registered based on investors’ complaints. They claimed that they had lost their savings to BLM. The investors included ex-servicemen, non-resident Indians and women.
BLM’s alleged financial irregularities appeared to go beyond a conventional deposit fraud, with the Crime Branch tracing transactions involving hotels, resorts, movie theatres, financial companies, trusts and businesses linked to Premkumar and his family.
On 16 October, Premkumar approached the Kerala High Court for quashing the FIR registered against him.
The Nadakkavu police in Kozhikode registered the FIR, and the case was later transferred to the Crime Branch based on the state police chief’s directive on 8 May 2026. The FIR invoked sections 316(5) and 318(2) of the Bharatiya Nyaya Sanhita (BNS), regarding criminal breach of trust and cheating.
The FIR arose from a complaint by Naveen S Nair, former CEO of BLM. Later, BLM lodged two complaints of rape against Naveen, following which he withdrew his complaint. Later, the FIR was expanded to include other petitioners.
Naveen’s complaint alleged that Premkumar exercised considerable influence over BLM’s financial affairs and transferred crores of rupees from the society’s accounts to those held by him and his relatives. The allegations included a transfer of ₹30 crore to an SBI account in Chennai, approximately ₹160 crore in loans Premkumar and his family members had availed from the society and not repaid, and the purchase of around 300 acres in Kancheepuram, Tamil Nadu, in his wife’s name.
The society alleged that the property was purchased using its funds.
The Crime Branch said it had identified more than 320 bank accounts linked to the society, Premkumar, his relatives, and associated companies.
The principal BLM accounts identified include three in Axis Bank, and one each in Punjab National Bank, ICICI Bank and Indian Bank. An investigator said that Premkumar exercised control over these accounts.
A major transaction the Crime Branch traced involved Vivin Luxury Suites in Vanchiyoor, Thiruvananthapuram. The property was purchased in the name of Premkumar’s wife, Prabha Premkumar. The property, comprising 21.81 acres and a building bearing Thiruvananthapuram Corporation No. 94/2860(1), was registered on 28 June 2024 for ₹8.25 crore.
Vivin Luxury Suites at Vanchiyoor in Thiruvananthapuram.
The sale deed mentioned payment towards clearing the sellers’ KSFE loan liability. Transfers were made through Canara Bank and Federal Bank accounts and payments from accounts belonging to siblings Vijayashree Vikraman and Sreekanth Vikraman, owners of the property.
However, a Crime Branch source told South First that the bank statements did not show the payments as described in the deed. The amount mentioned in the sale deed differed from the corresponding transactions in the bank accounts.
Investigators subsequently traced several bank transactions BLM had made to Vivin Luxury’s Canara Bank account. They included ₹1 crore on 19 May 2023; ₹4 crore and ₹3 crore on 5 September 2023; another ₹3.50 crore on the same day; ₹4.50 crore on 7 September 2023; and ₹50 lakh on 22 September 2023.
Another ₹50 lakh was credited to Vijayasree’s sister Jayasree Vikraman’s account on 30 September 2023, and ₹40 lakh on 15 November 2023, from a BLM-held Axis Bank account.
Investigators also traced ₹31.50 lakh and ₹35.50 lakh transferred from the account of Chennai-based Maali & Manvi, a firm with interests in import, export and movie making. The firm’s directors included Prabha and her actor son Premkumar Madhumkesh. The amounts were transferred on 31 May 2023 and 19 July 2024, respectively.
Prabha’s account showed payments of ₹3 crore on 26 June 2023, ₹83 lakh on 15 January 2024, and ₹69.49 lakh on 27 March 2024.
The Crime Branch said substantial amounts reached her and Maali & Manvi’s accounts from BLM before these payments were made.
The investigation’s principal finding was that ₹17.40 crore was paid directly from different BLM accounts to Vivin Luxury before the property was registered in Prabha’s name.
Investigators suspect BLM acquired financially distressed businesses at above the asking price, and the additional amount was returned to the accounts of either the accused or his nominees. All of these suspicions are now under investigation.
Another major transaction concerned Ragam Theatre in Thrissur, purchased in the name of BLM from George Neraparambil for ₹70.50 crore. The bank transactions the Crime Branch examined showed that BLM transferred ₹65.42 crore to George’s accounts during October and November 2024.
Ragam Theatre in Thrissur
Of this, ₹19.95 crore was allegedly routed to Premkumar’s personal account via George’s account.
The Crime Branch traced ₹4 crore transferred from BLM to George’s account at Axis Bank’s Edappally, Ernakulam, branch on 21 October 2024, followed by an immediate transfer to Premkumar. A similar ₹4-crore transfer took place on 23 October. Another ₹4 crore was transferred on 24 October and credited to Premkumar’s account on 28 October. On 2 November, another ₹4 crore was transferred to George, of which ₹3.95 crore reached Premkumar on 4 November.
Separately, ₹3 crore was credited to Premkumar on 17 October from another of George’s accounts. Another ₹1 crore was transferred on 18 October.
The Crime Branch has also flagged the role of Brios Finvest India Ltd, a Chennai-registered financial company. Ragam Theatre was reportedly mortgaged to Brios.
The Registrar of Companies records showed that Premkumar had been a director of Brios until 1 January 2022.
Investigators found that approximately ₹119 crore was credited to Brios from BLM accounts between April 2023 and 12 December 2024, while around ₹35 crore flowed back to BLM during the same period. Transactions between the two entities from 2019 onwards exceeded ₹275 crore, the Crime Branch has found.
South First has also found that ₹28,32,23,921 was transferred from BLM accounts to Foschia Resorts Pvt Ltd, which owns Vibe Resort, a star hotel in Munnar, between November 2022 and November 2024. Premkumar became a director of Foschia in February 2023 and resigned on 22 September 2026. The resignation came after the investigation had begun.
Also Read: Who is R Premkumar, arrested in alleged Rs 5,000-crore Bharat Lajna Society fraud case?
One strategy Premkumar reportedly adopted was to target ex-servicemen, NRIs and women, and use their credibility and social networks to attract more investors. By appointing former defence personnel as agents and offering them commissions on deposits, BLM turned people who were trusted within their communities into instruments for expanding the firm’s investor base.
“I have deposited ₹10 lakh in BLM, which I received after retiring from service. I got ₹2 lakh as commission for my own deposit and also got a job as a BLM agent. I brought several people from my circle into the society. We regularly received what we believed were returns on our investments. But it was actually money being rotated,” an ex-serviceman in Thiruvananthapuram told South First.
BLM promised a monthly interest of 2%, and the payments were made regularly until December 2023. His position as an agent also enabled him to earn commissions by bringing in other depositors, he said, requesting anonymity.
“Most BLM investors are defence personnel. People trust us, and Premkumar used that credibility for his personal financial gains,” he alleged.
“When the 300 acres were purchased in Kancheepuram, we believed the land belonged to BLM. We had even visited the property. But later, we came to know that BLM only held the power of attorney, which could be cancelled at any time, while the actual owner was Premkumar’s wife, Prabha,” he said.
Also Read: Crime Branch arrests Bharat Lajna Society chairman in alleged ₹5,000-crore fraud.
Sonia Mol Sebastian, who invested ₹1.6 crore in BLM, is another complainant. She was offered a position on the society’s board of directors in 2022. She stepped down from the post in 2024.
However, Sonia said BLM had not returned her investment.
“When I asked for my money back, they told me that the deposit would mature only in 2027. Members do not even know where the society’s offices are functioning in Keralam and Tamil Nadu. The society had an office in Koyambedu (a commercial and transport hub in Chennai) earlier. Now BLM appears to be focusing mainly on Tamil Nadu. It is also planning to open 20 more branches in the coming months,” she told South First.
Sonia alleged that agents usually collected cash and cheques directly from the members’ homes or offices. She also claimed that agents were offered ₹28,000 for every ₹1 lakh deposited.
“About 75% of the society’s properties have been pledged. There is no risk fund or reserve fund for the society,” she alleged.
A BLM insider alleged that Premkumar’s media investments were meant to protect the society’s public image and deflect scrutiny of its financial activities. He claimed that the society frequently placed advertisements in news media to maintain visibility and credibility.
“People who withdrew their money at least two weeks ago managed to get it back. But there is no guarantee that other members could withdraw their deposits. Premkumar may also try to use this case to his advantage. He could face criminal charges, and investors may not get their money back unless the court intervenes strongly,” he said.
The man further alleged that Premkumar cultivated connections with leaders across political parties and frequently took photographs with political figures to buttress his credibility among investors. He claimed that amendments to the society’s bylaws allowing it to invest in businesses beyond housing created an opportunity that its management allegedly exploited.
“This loophole, combined with promises of higher returns, helped them gain the trust of members. This is only the tip of the iceberg,” he added.
The Crime Branch has identified several companies and firms in which Premkumar and his close relatives held directorships or management positions. BLM sources said these entities were used to route the society’s funds into personal accounts and private assets.
Thamizhaga Cable TV
The list of firms included YBM Travels Private Limited, YBM Transport Private Limited and YBM Construction Private Limited, in which Premkumar is identified as a director. Vivin Luxury Suites Private Limited is linked to Prabha Premkumar and Premkumar Madhumkesh.
Prabha and Madhumkesh also appeared as directors of Ragha Garudathri Chits Private Limited, Manu Gold Private Limited, Foschia Resorts Private Limited, Carecans International Private Limited, Arjhava Real Estate LLP, SMP Pharma Private Limited and Maali Manvi Exim Pvt Ltd.
Premkumar, Prabha, Madhumkesh, daughter Manusha, and nephew Siddeswar Pradeepkumar Nair were listed as directors of Arjhava Real Estate LLP, BLM Gold, BLM Bazar, and Maali & Manvi Movie.
One major transaction involved Maali & Manvi Exim Pvt Ltd, which received ₹16,45,22,000 from BLM’s Axis Bank and Punjab National Bank accounts. The Crime Branch said ₹1 crore was subsequently credited to Premkumar’s account and ₹53,49,21,814 to Prabha’s account.
YBM Travels received ₹12,68,16,614 from BLM between 18 November 2024 and 30 March 2026. Of this, ₹50 lakh was transferred to Premkumar’s account and ₹2.21 crore to his nephew Siddeswar’s account.
Mahasank Energy LLP, in which Premkumar’s wife was a director, received ₹1.16 crore from BLM accounts during 2020–2022. The society also transferred another ₹1,07,29,000 to BLM Gold.
Winners Royal Varsha, another multi-state cooperative society, received ₹25.90 crore from BLM.
Subsequently, ₹5,80,94,654 was credited to Premkumar’s account and ₹4,52,59,176 to Prabha’s account.
Another significant transaction concerned Sreevalsam Educational Trust, which received ₹31,32,50,000 from BLM accounts during 2022. The Crime Branch noted that Premkumar was appointed chairman of the trust during the same period.
Other transactions included ₹8.10 crore to Vinayagar Stores, ₹9.90 crore to Vairaprumal, ₹27.70 crore to KC Enterprises, ₹4.70 crore to Gokulam Finance, ₹2.87 crore to Good Line Products, ₹6,23,97,000 to Rizvan Traders, ₹1 crore to Bakal Resort, ₹4.39 crore to Vellappalli Brothers and ₹2.50 crore to White Dhammar Resorts.
The investigation also found a transfer of ₹16 crore to ‘Thamizhaka’ Cable TV, according to Crime Branch records.
Thamizhaga Cable TV Communication Limited (TCCL) is a cable TV operator-owned company formed by members of the Tamil Nadu Cable TV Operators Welfare Association (TCOA).
The Crime Branch has named Prabha, Madhumkesh and Pradeepkumar Nair as accused in the case. The probe is examining the roles of BLM board members.
A Crime Branch source told South First that the probe has so far established serious irregularities in transactions involving the BLM and its associated entities. The Crime Branch has verified more than 320 bank accounts and questioned only Naveen Nair and two society members as witnesses.
All three had expressed grievances about the society’s activities.
According to Supreme Court lawyer Advocate Babila Ummer Khan, BLM, being a multi-state cooperative society, is registered with the Central Registrar of Cooperative Societies (CRCS) under the Union Ministry of Cooperation in New Delhi.
She said the alleged financial irregularities could also attract additional offences under the Banning of Unregulated Deposit Schemes (BUDS) Act.
BLM Chief Operating Officer VP Saidalvi was quoted on News Malayalam 24×7, where Premkumar is a stakeholder according to information shared with South First, as saying that “The company has investments of Rs 850 crore. However, the company has assets of Rs 1000 crore in the name of the company today.”
Saidalvi also said in a press conference on October 30 that “Premkumar is not currently the chairman of BLM. Karuna Murthy is currently the president”. BLM’s leadership page, though, continues to identify Premkumar as the founder chairman, and he has remained the public face of the society till now.
(Edited by Majnu Babu).
