ED Freezes Rs 10.98 Crore in Assets Linked to Karuvannur Service Co-Op Bank Fraud
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Synopsis
In a recent move, the ED has provisionally attached assets worth Rs 10.98 crore as part of the investigation into the fraud case involving Karuvannur Service Co-operative Bank. This includes various properties and cash deposits, revealing serious financial misconduct within the institution.
Key Takeaways
- ED attaches Rs 10.98 crore in assets.
- Includes movable and immovable properties.
- Investigation linked to Karuvannur Service Co-operative Bank fraud.
- Loans illegally sanctioned without collateral.
- Ongoing inquiry with further developments expected.
Kochi, Jan 21 (NationPress) In a noteworthy development, the Directorate of Enforcement (ED), Kochi Zonal Office, has provisionally attached assets valued at Rs 10.98 crore in relation to the ongoing inquiry into the Karuvannur Service Co-operative Bank fraud case.
The attached assets comprise one movable property and 24 immovable properties, including land and buildings situated in Kerala. The immovable properties are estimated to be worth around Rs 10.48 crore, while the movable property, in the form of a cash deposit, is assessed at Rs 50.53 lakh.
The ED’s inquiry was initiated following an FIR lodged by Kerala Police under Section 420 of the Indian Penal Code (IPC), 1860. The Crime Branch of Kerala Police has already filed over 16 FIRs in Thrissur District concerning fraud at Karuvannur Service Co-operative Bank Ltd.
As per the ED's findings, loans were illicitly sanctioned and distributed to individuals and their associates from Karuvannur Service Co-operative Bank Ltd. These loans were approved without collateral through a calculated conspiracy involving the bank’s secretary, committee members, and the bank manager, who were reportedly in collusion since 2010.
The investigation has uncovered that the Karuvannur bank authorized fictitious loans against the same properties multiple times, often without the members' awareness.
Furthermore, loans were granted to non-members based on inflated property assessments, with the funds subsequently misappropriated and laundered by the implicated beneficiaries. The distribution of these loans was allegedly orchestrated at the direction of CPI (M) District Committee members who dominated the bank's governing body.
In exchange, the CPI (M) party purportedly received donations from the beneficiaries via the governing body. Cash disbursements were made for these loans, and significant cash deposits were recorded in the bank’s accounts.
The Karuvannur Service Co-operative Bank has been under examination by the Registrar of Co-operative Societies in Thiruvananthapuram. Following an FIR filed in July 2021, the Registrar’s audit report disclosed the diversion of over Rs 150 crore.
Previous investigations by the ED involved searches at 20 locations and audits at five cooperative banks in Thrissur between August and September 2023 to trace the proceeds of crime (POC).
The ED has already apprehended four individuals—P. Sathishkumar, Kiran P.P., Aravindakshan P.R., and Jilse C.K.—for benefiting from the unlawfully sanctioned loans. These individuals were arrested in September 2023 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
In earlier stages of the investigation, the ED attached properties worth Rs 117.83 crore belonging to Bijoy and others, who were also found to have received illicit loans from the bank. To date, the total proceeds of crime (POC) attached by the ED in this case amount to Rs 128.72 crore. The inquiry is ongoing, with further developments anticipated.
