Kochi, Jan 15 (AHN) A businessman who duped Kerala cashew traders of Rs 24 crore with the false promise of procuring low-cost stock from Tanzania was arrested by the ED from the state's Ernakulam, an official statement said on Thursday.

The Directorate of Enforcement's (ED) Kochi Zonal Office, arrested Aneesh Babu, 35, a resident of Kollam, on January 14 under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002.

On Thursday, he was produced before the Special Court (PMLA), Ernakulam, which sent him to judicial custody till January 19.

The ED initiated an investigation into the matter based on multiple FIRs registered by Kerala Police and re-registered by the Crime Branch, Kollam, alleging large-scale cheating of cashew traders.

It was revealed that Aneesh Babu, through his entities, namely Bi Southern Trade Ltd (Tanzania), Praise Exports FZE (Sharjah) and Vazhavila Cashews (Kollam), induced several traders to part with huge sums of money on the false promise of import and supply of raw cashews from Tanzania/Africa, the ED said.

The ED investigation revealed that advances amounting to approximately Rs 24.76 crore were collected from various complainants. However, neither the cashews were supplied nor the advances refunded.

Instead, forged and fabricated documents such as Bills of Lading, SWIFT messages and cheques were provided to mislead the victims, said the ED statement.

The funds so collected were diverted, layered, concealed and partly retained abroad, thereby generating, possessing, using and projecting the Proceeds of Crime (POC), constituting the offence of money laundering under Section 3 of PMLA, 2002, it said.

During the course of the investigation, Aneesh Babu was issued repeated summonses under Section 50 of PMLA since 2021. Except for one appearance on January 3, 2025, his conduct remained non-cooperative and evasive, the ED said.

He consistently failed to produce documents and avoided joining the investigation. His anticipatory bail applications were dismissed by the Sessions Court, Ernakulam, the Kerala High Court, and the Supreme Court, it said.

On January 14, 2026, the statement of Aneesh Babu was recorded in the ED office, where he gave evasive replies and failed to disclose crucial details regarding the utilisation and overseas parking of the proceeds of crime, and considering the likelihood of evidence tampering, influence over witnesses, and evasion of the legal process, he was arrested.

Earlier, the High Court, while hearing the anticipatory bail application of Aneesh Babu, also opined that his custodial interrogation is required to trace the money trail, and the ED will trace the PoC, especially overseas PoC, and will identify other persons involved in the money laundering offence.