Thiruvananthapuram, Oct 8 (SocialNews.XYZ) The Enforcement Directorate (ED) has detected major irregularities in loan transactions at three co-operative banks in Kerala.
The findings were disclosed in a statement issued by the ED on Thursday.
The irregularities came to light during searches conducted at 17 premises in Ernakulam, Malappuram, Kozhikode and Thrissur on Wednesday.
The searches were carried out in connection with three separate cases being investigated under the Prevention of Money Laundering Act (PMLA).
The cases relate to the Urban Co-operative Society, Angamaly; Thennala Service Co-operative Bank in Malappuram; and Kuttanellur Service Co-operative Bank in Thrissur.
The ED said its Kochi Zonal Office is investigating 27 co-operative society and bank fraud cases involving approximately Rs 550 crore in suspected proceeds of crime.
In the Urban Co-operative Society, Angamaly case, the ED searched five premises in Ernakulam and nearby areas.
The premises were linked to the society and individuals connected with the alleged fraudulent loan transactions.
The investigation followed an FIR registered by the Angamaly Police, which alleged fake loan applications, loans granted to ineligible persons, and misappropriation of society funds.
The FIR estimated the alleged fraud at around Rs 55 crore.
The ED found that 422 loans worth about Rs 96.74 crore had been sanctioned against 108 properties belonging to 65 members.
Serious irregularities were detected in 159 loans worth approximately Rs 33.82 crore.
These included the absence of original title deeds, the use of photocopies of deeds and, in certain cases, the absence of registered mortgages.
Some loan applications were incomplete, while loans were allegedly sanctioned in the names of ineligible or non-existent persons.
The ED seized documents relating to the alleged fraudulent transactions.
Documents relating to 38 properties, digital devices and mobile phones were also seized.
Two fixed deposits worth about Rs 1.82 crore were frozen.
In the Thennala Service Co-operative Bank case, the ED searched seven premises linked to former office-bearers and directors in Malappuram and Kozhikode.
The investigation followed 10 FIRs registered by the Kottakkal Police.
Around 53 additional FIRs were also registered in 2023 and 2024 in and around Kottakkal.
The bank had allegedly promised higher returns on fixed deposits.
However, customers allegedly did not receive their principal amounts and returns after maturity.
The ED also found alleged irregularities in Kisan Credit Card (KCC) and land-backed loans.
Fake KCC loans were allegedly sanctioned to fictitious and benami members.
Some loans were allegedly sanctioned beyond prescribed limits and without the required approvals.
Loan funds were allegedly diverted to deposits, repayment of earlier liabilities and other unauthorised transactions.
The suspected proceeds of crime are estimated at around Rs 10 crore.
The ED recovered documents relating to two properties and froze 20 fixed deposits and bank accounts holding about Rs 24.50 lakh.
In the Kuttanellur Service Co-operative Bank case, the ED searched five premises in Thrissur and nearby areas linked to former office-bearers and officials.
The investigation followed four FIRs registered by the Ollur Police.
The cases relate to alleged cheating and the use of forged documents.
According to the ED, properties belonging to bank customers were allegedly mortgaged as security for loans without their knowledge or consent.
The loans were allegedly sanctioned in the names of third parties.
Forged death certificates, identity documents, and valuation reports were allegedly used.
The ED also found that board members allegedly granted membership to persons outside the bank's jurisdiction and provided loans to them through illegal means.
The value of properties offered as collateral was allegedly inflated.
Documents of loan applicants were also allegedly forged.
According to the ED, the alleged transactions caused a financial loss of more than Rs 27 crore to the bank.
Digital evidence and documents relating to the alleged loan transactions were seized during the searches.
Further investigation is in progress.
Source: IANS
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