Buds Authority takes steps to recover defrauded funds in land fraud case

Time of India

13-05-2025

Thiruvananthapuram: The competent authority under the Buds Act has initiated measures to recoup Rs 89 lakh, which was paid to Kinfra by the key accused in the
Nirmal Krishna deposit fraud
to allegedly seize a 50-cent land owned by a woman entrepreneur.Usha Umesh, who ran Pooja Garments, owns the land and a 54,000 sq ft building at Kinfra Park. The woman alleged that the accused K Nirmalan seized the firm and land in 2013 through fraudulent means.As per the financial fraud case, more than 13,000 depositors in Thiruvananthapuram and Kanyakumari districts were allegedly cheated out of over Rs 1,000 crores, by Nirmal Krishna Chit Fund firm.He used the defrauded money of the depositors to seize the land, the woman alleged.
Buds Authority
attached the land during the probe into the
chit fund fraud
.
The authority later found that the land and building were not owned by Nirmalan but by the woman. As per rules, Buds Authority has no power to attach a tri-party asset; its powers are limited to attaching the assets directly owned by the accused. After finding that Pooja Garments was owned by the woman, Buds Authority halted attachment proceedings but started taking measures to recoup the Rs 89 lakh paid to Kinfra by the accused.
"There were irregularities in the way the factory land was handed over to Nirmalan. We sent a letter to Kinfra demanding the payment of Rs 89 lakh. However, we received a vague reply," said a Buds Authority officer.Usha tried to enter the factory a few days ago but was stopped by the accused and his associates. In response, Usha approached the district collector, and the collector directed the police to ensure protection. However, she alleged that the police failed to provide any protection to her and she was evicted when she tried to enter.