Published Oct 29, 2026 | 3:01 PM ⚊ Updated Oct 30, 2026 | 4:21 PM
A photograph dated July 3, 2026, shows R. Premkumar presenting a shawl to Tamil Nadu Chief Minister C Joseph Vijay.
Synopsis: R Premkumar has been arrested in connection with an alleged ₹5,000-crore financial fraud involving the Bharat Lajhna Multi-State Housing Cooperative Society, which he founded. His arrest has brought scrutiny to BLM’s wide-ranging business interests across transport, hospitality, education, jewellery and other sectors. This story has been updated with clarifications shared by News Tamil 24×7 and News Malayalam 24×7.
R Premkumar, arrested by the Kozhikode Crime Branch in Chennai in connection with an alleged ₹5,000-crore financial fraud involving the Bharat Lajhna Multi-State Housing Cooperative Society (BLM), which he founded and heads as chairman, is also a director of multiple other companies.
Premkumar was arrested by the Crime Branch’s Economic Offences Wing on October 29, 2026. He reportedly complained of physical discomfort following his arrest and was admitted to a Government Hospital in Chennai. He will be shifted to Kozhikode once his health improves.
Investigators are probing allegations that money collected from depositors was diverted to personal accounts and other business ventures, including alleged purchases of hotels, resorts and theatres.
The arrest has brought attention to the business activities of BLM, which expanded beyond housing and land development into sectors including transport, education, jewellery, civil supplies, hospitality and energy in a span of just 20 years.
According to a 2023 interview with Unique Times magazine, Premkumar was born in Thiruvananthapuram, Kerala, and brought up in Chennai, where his father worked with the Chennai Port Trust.
In the interview, Premkumar said he founded BLM in 2006 with the support of four friends after an experience involving difficulties in obtaining a cooperative bank loan. This prompted him to establish an institution that could provide financial assistance to ordinary people.
BLM was established in Chennai under the Multi-State Co-operative Societies Act, 2002. The society’s official website identifies Premkumar as its founder-chairman.
BLM’s official website lists activities across several sectors, including land and housing development, transport, education, jewellery, civil supplies, hospitality and sustainable energy.
In the Unique Times interview, Premkumar described the organisation’s expansion into businesses across Tamil Nadu, Kerala, Puducherry and Andhra Pradesh.
The activities he outlined included housing projects, passenger transport, cement manufacturing, jewellery retail, hotels and resorts, and biogas production. He also discussed education and healthcare initiatives.
Among the operations he described were BLM Transports’ passenger services, cement manufacturing facilities in Andhra Pradesh and Kerala, jewellery retail in Kerala, and hospitality properties in locations including Chennai, Thiruvananthapuram, Munnar and Bekal.
Investigators allege that BLM attracted deposits from investors, including retirees, by promising high returns. Several depositors have reportedly encountered difficulties withdrawing their money after their investment schemes matured.
The investigation concerns allegations that deposits were misappropriated and diverted to personal accounts, family members and other business ventures. The Enforcement Directorate has also registered an Enforcement Case Information Report (ECIR) to investigate suspected money laundering and hawala transactions linked to the society.
A Kerala Crime Branch source told South First that Premkumar had allegedly attempted to obstruct the investigation by offering a bribe to officials during a visit to Thiruvananthapuram two days before his arrest. According to the source, investigators followed him to Chennai and arrested him there.
The source said Keralam Chief Minister VD Satheesan and Home Minister Ramesh Chennithala had taken a firm stand against any compromise in the case. When Premkumar travelled to Chennai, the investigating team followed him and arrested him on Thursday morning.
A photograph taken on July 3, 2026, of a delegation meeting Tamil Nadu Chief Minister C Joseph Vijay at the Chief Minister’s Secretariat, and released by the Department of Information and Public Relations (DIPR), had identified R Premkumar as one of the directors of News Tamil 24×7.
Chairman Sagilan Padmanabhan (seen to the left of Vijay above) told South First that “Mr Premkumar is not associated with News Tamil 24×7 in any capacity. News Tamil 24×7 has only three directors: Sagilan, Nagamanikkam, and Kumaran. The confusion appears to have originated when Mr Premkumar met Chief Minister Vijay at the Tamil Nadu Secretariat. Following the meeting, the Department of Information and Public Relations (DIPR) mistakenly identified him as a director of News Tamil 24×7 in its press release. We have already requested the DIPR to correct this error.”
Anupkumar, head of the Human Resources Department, clarified to South First that “Mr R Premkumar is a stakeholder in News Malayalam 24×7 and has no association with News Tamil 24×7 in any capacity. As the HR representative of News Malayalam 24×7, I am providing this clarification to help ensure that the correct information is reflected in your publication.”
Speaking to South First, TM Harshan, a senior journalist with News Malayalam 24×7, had earlier said that the channel had come across reports concerning Premkumar but that he was unaware of the other allegations against him.
“Our chairman is Sagilan Padmanabhan,” Harshan said.
(With inputs from Sreelakshmi Soman in Kerala. Edited by R Rajesh Kumar.)
