Indesit is70c Fan Catching on rear cover?

My parents recently bought a house and included was a Indesit is70c tumble dryer. We tried it today for the first time and when we turned it on, the drum wouldn't rotate and there was a strong burning smell.

Having looked at some existing answers online, I opened the small rear cover at the back, as well as the top of the machine. Here's what I found:

1. The belt is fine and the drum appears to be in alignment.

2. When I took the rear fan cover off, a little water came out of it.

3. On operating the machine with the rear fan cover off, the drum turns but is quite noisy. However, there appears to be no heat from the machine.

4. If I put the rear fan cover back on, the fan appears to catch on the cover and then the drum will not rotate. The cover does not look dented/damaged in any way, apart from where the fan has been scratching against it.

Any ideas why the cover might be catching please? Also, is the lack of heat indicative of a failed heater element?

Thank you in anticipation.