Thiruvananthapuram, October 8, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) has detected major irregularities in loan transactions at three co-operative banks in Kerala during searches conducted as part of separate money laundering investigations.
The findings were disclosed by the ED in a statement on Thursday following searches at 17 premises across Ernakulam, Malappuram, Kozhikode and Thrissur on Wednesday.
The searches were conducted in connection with three cases being investigated under the Prevention of Money Laundering Act (PMLA). The cases involve the Urban Co-operative Society in Angamaly, Thennala Service Co-operative Bank in Malappuram and Kuttanellur Service Co-operative Bank in Thrissur.
The ED said its Kochi Zonal Office is investigating 27 cases involving alleged fraud in co-operative societies and banks, with suspected proceeds of crime estimated at around Rs 550 crore.
In the Urban Co-operative Society, Angamaly case, the agency searched five premises linked to the society and individuals allegedly connected with fraudulent loan transactions.
The investigation stems from an FIR registered by Angamaly Police alleging fake loan applications, sanctioning of loans to ineligible persons and misappropriation of society funds. The alleged fraud was estimated at around Rs 55 crore.
The ED found that 422 loans amounting to approximately Rs 96.74 crore had been sanctioned against 108 properties belonging to 65 members. Irregularities were detected in 159 loans worth around Rs 33.82 crore.
According to the agency, these included the absence of original title deeds, reliance on photocopies and, in some cases, the absence of registered mortgages. Some loan applications were incomplete, while loans were allegedly sanctioned in the names of ineligible or non-existent persons.
The ED seized documents relating to the alleged transactions, along with records concerning 38 properties, digital devices and mobile phones. Two fixed deposits worth approximately Rs 1.82 crore were also frozen.
In the Thennala Service Co-operative Bank case, the ED searched seven premises linked to former office-bearers and directors in Malappuram and Kozhikode.
The investigation followed 10 FIRs registered by Kottakkal Police, besides around 53 additional FIRs registered in and around Kottakkal during 2023 and 2024.
The bank had allegedly promised customers higher returns on fixed deposits, but depositors allegedly did not receive their principal amounts and returns after maturity.
The ED also detected alleged irregularities in Kisan Credit Card (KCC) and land-backed loans. According to the agency, fake KCC loans were sanctioned to fictitious and benami members, while some loans allegedly exceeded prescribed limits or were granted without required approvals.
Loan funds were allegedly diverted towards deposits, repayment of earlier liabilities and other unauthorised transactions. The suspected proceeds of crime in this case have been estimated at around Rs 10 crore.
The agency seized documents relating to two properties and froze 20 fixed deposits and bank accounts containing approximately Rs 24.50 lakh.
In the Kuttanellur Service Co-operative Bank case, five premises in Thrissur and nearby areas linked to former office-bearers and officials were searched.
The investigation followed four FIRs registered by Ollur Police relating to alleged cheating and the use of forged documents.
The ED alleged that properties belonging to bank customers were mortgaged as security for loans without their knowledge or consent, while loans were sanctioned in the names of third parties.
The agency also alleged the use of forged death certificates, identity documents and valuation reports. It further found that board members allegedly granted membership to persons outside the bank’s jurisdiction and facilitated loans to them through illegal means.
The ED said the value of properties offered as collateral was allegedly inflated and documents submitted by loan applicants were also allegedly forged.
According to the agency, the alleged transactions resulted in a financial loss of more than Rs 27 crore to the bank.
Digital evidence and documents relating to the alleged loan transactions were seized during the searches. Further investigation is in progress.
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