Kochi, Oct 8 (PTI) The ED has seized documents, digital devices and frozen fixed deposits and bank accounts worth over Rs two crore during searches conducted at 17 premises linked to three cooperative banks across Keralam as part of a separate probe for money laundering, the agency said on Thursday.
The Enforcement Directorate (ED), in a statement, said that searches were conducted on Wednesday under the Prevention of Money Laundering Act (PMLA) as part of investigations into an alleged cooperative bank fraud involving proceeds of crime amounting to around Rs 550 crore.
The agency said documents relating to 40 immovable properties were recovered during the searches in the three cases.
Two fixed deposits worth around Rs 1.82 crore linked to the Urban Co-operative Society Ltd, Angamaly near here, were frozen, officials said.
Apart from that, the ED seized documents relating to fraudulent loan transactions, 38 immovable properties, digital devices, mobile phones, and other evidentiary records.
The agency said its investigation found that 422 loans amounting to around Rs 96.74 crore were sanctioned against 108 immovable properties belonging to 65 members.
Serious irregularities were identified in 159 loans amounting to around Rs 33.82 crore, including the absence of original title deeds, the use of photocopies of deeds, the absence of registered mortgages, incomplete loan applications, and loans sanctioned in the names of ineligible or non-existent persons, it said.
In the Thennala Service Co-operative Bank, Malapuram case, orders were issued to freeze 20 fixed deposits and bank accounts, with an aggregate balance of around Rs 24.50 lakh, belonging to former secretary K A Vasudevan Moossad and his wife, Rajani, ED said.
Documents relating to two immovable properties were recovered during searches at seven premises linked to former office-bearers and directors, the statement said.
ED said its investigation revealed that Kisan Credit Card loans were allegedly sanctioned in the names of fictitious or benami members, beyond prescribed limits and without requisite approvals.
The loan funds were allegedly diverted towards deposits, repayment of earlier liabilities and other unauthorised transactions, it said.
In the Kuttanellur Service Cooperative Bank, Thrissur, digital evidence and documents relating to loans allegedly provided through illegal means were seized during searches at five premises in Thrissur and nearby areas, officials said.
ED said its investigation found that bank officials allegedly granted membership to people outside the bank’s jurisdiction and third parties, inflated the valuation of collateral properties and forged documents, causing a financial loss of more than Rs 27 crore to the bank.
Officials said that the agency has been investigating multiple co-operative society/bank fraud cases.
There are 27 cases involving about Rs 550 crore in Proceeds of Crime and cheating that are under investigation, the ED said.
ED has identified co-operative society and bank frauds as one of the focus areas to ensure faster recovery of proceeds of crime and restitution to victims, officials added. PTI TBA TBA ROH
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