Kerala's Karuvannur Bank fraud: ED attaches assets worth Rs 10.98 Cr
text_fieldsKochi: In the case of the Karuvannur Service Co-operative Bank fraud in Kerala, the Enforcement Directorate’s Kochi Zonal Office attached assets worth Rs 10.98 crore in connection as part of an ongoing investigation.
The attached assets include one movable property and 24 immovable properties comprising land and buildings located in Kerala. The immovable properties are valued at approximately Rs 10.48 crore, while the movable property, in the form of a cash deposit, is valued at Rs 50.53 lakh, IANS reported.
The ED’s investigation was initiated based on an FIR filed by Kerala Police under Section 420 of the Indian Penal Code (IPC), 1860. The Crime Branch of Kerala Police has already registered over 16 FIRs in Thrissur District regarding fraud at Karuvannur Service Co-operative Bank Ltd
According to the ED, loans were illegally sanctioned and disbursed to individuals and their benamis from Karuvannur Service Co-operative Bank Ltd. The loans were granted without collateral through a systematic conspiracy involving the bank’s secretary, committee members, and the bank manager, all of whom were allegedly in collusion since 2010.
The investigation revealed that the Karuvannur bank sanctioned bogus loans on the same properties multiple times, often without the knowledge of the bank’s members.
In addition, loans were disbursed to non-members against inflated property valuations, with the funds subsequently siphoned off and laundered by the accused beneficiaries. The disbursement of these loans was reportedly done at the behest of CPI (M) District Committee members who controlled the bank's governing body.
In return, the CPI (M) party allegedly received donations from the beneficiaries through the governing body. Cash disbursements were made for these loans, and huge cash deposits were found in the bank’s books.
The Karuvannur Service Co-operative Bank has been under scrutiny by the Registrar of Co-operative Societies in Thiruvananthapuram. Following an FIR filed in July 2021, the Registrar’s audit report revealed the diversion of over Rs 150 crore.