Kozhikode (Keralam) | The Crime Branch on Thursday took BLM Credit Society chairman R Premkumar into custody from his residence in Chennai in connection with an alleged fund diversion case, sources said.

Bharath Lajhna Multi State Housing Co-operative Society Limited (BLM Society) is a multi-state cooperative society headquartered in Chennai, Tamil Nadu, with operations in Keralam and Puducherry.

Premkumar was shifted to a government hospital in Nungambakkam after he complained of physical discomfort, the sources said.

He is likely to be shifted to Kozhikode after doctors assess his health condition, they added.

The case pertains to the alleged diversion of funds deposited with the credit society for private purposes, including the purchase of resorts, theatres and hotels in Keralam and Chennai, the sources said.

The case was registered based on a complaint by a Kozhikode native at Nadakkavu police station, alleging financial irregularities in the society.

Later, the case was transferred to the Crime Branch, Economic Offences Wing in Kozhikode, officials said.

Even though the complainant withdrew the complaint, the Crime Branch decided to continue the probe based on its initial findings.

The probe found that a large amount of money had been diverted from the institution, the sources said.

Premkumar has approached the Kerala High Court to challenge the case, which is scheduled to be heard on November 29.

Following allegations against the institution, Premkumar had earlier issued a clarification, claiming that the society was regularly repaying the principal and interest to depositors and that they had not faced any inconvenience. He had also alleged that certain individuals were making a concerted effort to undermine the institution.

Last month, Premkumar lodged a complaint with Chief Minister VD Satheesan and Home Minister Ramesh Chennithala, alleging that a false campaign against the BLM Society was affecting its operations.