ED raids cooperative banks in Thrissur, Ernakulam, Kozhikode over ₹121 crore fraud
Synopsis
The ED simultaneously raided over 17 locations across Thrissur, Ernakulam, and Kozhikode on 7 October, targeting three cooperative banks amid a ₹121 crore alleged fraud at the Angamaly Urban Cooperative Bank alone. With officials from Tamil Nadu also joining the operation, the probe appears to be widening beyond state lines — signalling this is no routine investigation.
Key Takeaways
The Enforcement Directorate (ED) launched raids across three Kerala districts on 7 October 2026 under the PMLA .
Three banks are under scrutiny: Angamaly Urban Cooperative Bank (Ernakulam), Kuttanellur Service Cooperative Bank (Thrissur), and Thennala Service Cooperative Bank (Kozhikode).
The ED had previously detected alleged irregularities of approximately ₹121 crore at the Angamaly bank through fraudulent loans.
More than 17 locations — including bank offices, branches, and private residences — are being searched simultaneously.
Former bank accountant Shiju is among those whose residence is being searched; he allegedly processed fraudulent loans.
Officials from Tamil Nadu are participating alongside Kerala ED teams, suggesting possible cross-state financial links.
The Enforcement Directorate (ED) on 7 October 2026 launched simultaneous search operations across cooperative banks and the residences of their officers and governing body members in three Kerala districts — Thrissur, Ernakulam, and Kozhikode — as part of its ongoing investigation into alleged financial irregularities and money laundering. The raids, conducted under the Prevention of Money Laundering Act (PMLA), began at approximately 6:30 am and involved officials drawn from both Kerala and Tamil Nadu.
Banks Under the Scanner
The operation targets three institutions: the Angamaly Urban Cooperative Bank in Ernakulam, the Kuttanellur Service Cooperative Bank in Thrissur, and the Thennala Service Cooperative Bank in Kozhikode. The searches span bank offices, branch premises, and the personal residences of serving and former employees, governing body members, and others allegedly linked to these institutions.
The ED had previously detected alleged financial irregularities of approximately ₹121 crore at the Angamaly Urban Cooperative Bank, reportedly arising from fraudulent loan disbursements. The latest searches are understood to be aimed at tracing the money trail and establishing the roles of those allegedly involved.
Key Individuals Named in the Probe
Investigators are also searching the residence of Shiju, a former employee and accountant of the Angamaly Urban Cooperative Bank, who, according to the ED, allegedly played a central role in processing fraudulent loans. In Thrissur, the agency is conducting searches at five locations connected to the Kuttanellur Service Cooperative Bank, including its branches at Ancherichira, West Anchery, and Padavarad, as well as the residences of the former bank president and governing body members.
In Kozhikode, investigators are covering seven locations in connection with the Thennala Service Cooperative Bank. Loan records, financial transactions, and internal documents are expected to be seized and scrutinised during the operation.
Context: A Pattern of Scrutiny in Kerala's Cooperative Sector
This operation is part of the ED's broader, continuing investigations into alleged financial irregularities across Kerala's cooperative banking sector. Cooperative banks in the state have faced regulatory and investigative attention in recent years, with multiple institutions coming under scrutiny for irregular lending practices. Notably, the involvement of officials from a neighbouring state suggests the probe may have cross-state financial links.
The scale of Wednesday's operation — spanning more than 17 locations across three districts in a single day — signals that the agency is moving toward a more comprehensive mapping of the alleged money trail rather than targeting isolated individuals.
What Happens Next
The ED is expected to analyse seized documents and financial records before deciding on further action, which could include arrests or the attachment of assets under the PMLA. The outcome of the searches will likely determine the next phase of the investigation into what the agency has described as a systemic pattern of fraudulent lending within these cooperative institutions.
Point of View
With personnel flown in from Tamil Nadu — suggests the ED has already built a substantial money trail and is now moving toward corroborating it with physical evidence. What is often missed in coverage of cooperative bank fraud is structural: these institutions operate with lighter regulatory oversight than commercial banks, making them historically vulnerable to insider manipulation. The ₹121 crore figure at Angamaly alone is likely a floor, not a ceiling. The real question is whether the probe will surface political or administrative links, given that cooperative banks in Kerala have traditionally been embedded in local political networks — a dimension that any serious accountability audit cannot ignore.
NationPress
7 Oct 2026
Frequently Asked Questions
Which cooperative banks were raided by the ED in Kerala on 7 October 2026?
The ED raided the Angamaly Urban Cooperative Bank in Ernakulam, the Kuttanellur Service Cooperative Bank in Thrissur, and the Thennala Service Cooperative Bank in Kozhikode. Bank offices, branches, and the residences of officers and governing body members were all covered in the operation.
What is the alleged fraud amount in the Kerala cooperative bank case?
The ED had previously detected alleged financial irregularities of approximately ₹121 crore at the Angamaly Urban Cooperative Bank, reportedly linked to fraudulent loan disbursements. The current raids are aimed at tracing the broader money trail across all three institutions.
Under what law are the ED raids being conducted?
The searches are being conducted under the Prevention of Money Laundering Act (PMLA). The ED is examining loan records, financial transactions, and other documents to establish the roles of individuals allegedly involved in the irregularities.
Who is Shiju and why is his residence being searched?
Shiju is a former employee and accountant of the Angamaly Urban Cooperative Bank. According to the ED, he allegedly played a key role in processing fraudulent loans, making him a person of interest in the money laundering investigation.
What could happen after the raids conclude?
Following the search operation, the ED is expected to analyse seized documents and financial records. Depending on findings, the agency could proceed with arrests, asset attachments, or formal charge sheets under the PMLA against those found to be involved.
