The Enforcement Directorate on Wednesday carried out searches across multiple locations in Kerala’s Ernakulam, Malappuram, and Thrissur districts as part of separate investigations into financial irregularities exceeding ₹92 crore in three cooperative banks. Coordinated teams from the federal agency inspected premises connected to the Angamaly Urban Service Co-operative Bank, Thennala Service Co-operative Bank, and Kuttanellur Service Co-operative Bank. The operations focused on unearthing evidence related to fraudulent loan disbursements, diversion of institutional capital, and the unauthorized transfer of mortgaged assets.
Angamaly Bank Faces Scrutiny Over ₹55 Crore Loan Fraud
The largest of the three cases centers on the Angamaly Urban Service Co-operative Bank in Ernakulam, where alleged financial fraud, forgery, and improper loan sanctioning amount to approximately ₹55 crore. Three operational teams dispatched from the agency’s Kochi zonal office carried out searches across targeted sites. Investigators found that loans were cleared using forged documentation, through files lacking mandatory paperwork, and under the identities of individuals who held no membership in the cooperative society.
Prior to the central agency’s intervention, the Kerala Police had registered criminal cases against 14 former and serving members of the bank’s governing committee alongside six employees. Building on those initial findings, the federal probe is reviewing specific account transactions and internal administrative approvals to establish individual culpability. Investigators are piecing together records to trace the ultimate recipients of the disbursed capital and clarify the roles played by elected board members.
Inquiries Expand to Malappuram Over Diverted Capital
In Malappuram district, the agency pursued allegations of illicit fund diversion and irregular loan allocations at the Thennala Service Co-operative Bank, where losses are estimated at around ₹10 crore. Search operations covered seven premises situated across Kozhikode and Malappuram districts. The inquiry centers on identifying the mechanisms used to sidetrack cooperative deposits into unauthorized channels.
Officials are examining ledgers and digital transaction histories to determine who benefited from the diverted funds. The investigation aims to reconstruct how credit decisions were made and whether systemic checks were bypassed to move money outside authorized banking frameworks.
Mortgaged Properties Allegedly Transferred in Thrissur
The third branch of the operation addressed a ₹27 crore irregularity at the Kuttanellur Service Co-operative Bank in Thrissur district. Central investigators searched six locations to secure records regarding the unauthorized transfer of properties pledged to the institution. Preliminary findings indicate that parcels mortgaged by borrowers were transferred to third parties without obtaining mandatory consent from the original owners or depositors.
Across all three bank inquiries, the agency’s focus remains trained on procedural violations, the reliance on fabricated paperwork, and the misappropriation of public savings. While field teams inspected numerous documents and operational premises during Wednesday’s drive, no immediate official confirmation was provided regarding specific seizures of cash or assets. The ongoing probe continues to follow the flow of suspected crime proceeds, tracking real estate transactions and mapping the wider network implicated in the irregularities.
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