Kochi, Nov 10 (IANS) The Enforcement Directorate (ED) has seized various incriminating documents and property-related papers after search operations at five locations in Thiruvananthapuram in connection with the money-laundering probe against the Nemom Service Cooperative Bank Ltd and others for allegedly defrauding depositors, an official said on Monday.
The ED raid, which was conducted on November 7, extended to several hours while armed officials belonging to the Central forces stood guard.
The ED’s Kochi Zonal Office, which is leading the investigation under the Prevention of Money Laundering Act (PMLA), 2002, reported the seizure of various incriminating documents, property-related papers, and 15 original fixed deposit receipts valued at approximately Rs 50 lakh.
In a statement, the federal agency said that the probe will be intensified.
The searches mark a fresh phase in the ongoing investigation into suspected financial irregularities estimated at nearly Rs 100 crore in the cooperative bank, which was earlier controlled by a CPI(M)-led panel.
The development has triggered political attention as it comes weeks before the local body elections in Kerala.
The bank came under scrutiny early this year after several depositors complained of non-repayment of their savings, prompting an inquiry by the Cooperative Department.
The probe, conducted under Section 65 of the State Cooperative Rules, found large-scale irregularities in loan disbursal, unsecured advances, and mismanagement of deposit schemes.
According to the inquiry report, the bank had extended loans worth Rs 34.26 crore, backed by collateral of only Rs 15.55 crore.
Of the Rs 10.73 crore collected under the Monthly Investment Scheme, only Rs 4.83 crore remained in the bank’s accounts.
The Cooperative Department held several former secretaries and board members responsible for losses exceeding Rs 60 crore, including Rs 31.63 crore attributed to one official alone.
Investigators also found that many loans were sanctioned in the names of relatives of bank officers, with little chance of recovery.
Excessive interest payments on deposits and unrecorded transactions further deepened the crisis.
Earlier, the Crime Branch’s Economic Offences Wing had arrested three people.
The bank, now under an administrator, has outstanding dues of around Rs 35 crore, though recovery is expected to be limited.
The ED’s intervention follows growing protests by investor groups demanding restitution of deposits and stricter oversight of Kerala’s cooperative banking sector, which has faced mounting allegations of political interference and mismanagement.
–IANS
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