Sajeevan Kollapallil was taken into custody by the Directorate of Enforcement (ED) on September 26, 2023, at 18:15 in connection with an ongoing investigation into a money laundering case involving fraud that occurred at the Pulpally Service Cooperative Bank.
The Governing Body members and bank employees of the Pulpally Service Cooperative Bank, Pulpally Wayanad, were the targets of an FIR filed by the Vigilance and Anti-Corruption Bureau, Wayanad, Kerala, against them.
The ED investigation revealed that bank officials and members of its governing body sanctioned enhanced loans without the consent or knowledge of the loan applicants by overvaluing the properties offered as collateral, with the excess amount going to Sajeevan Kollapallil (Private Person). The applicants did not repay the loans, resulting in a total loss of Rs.5.62 crore to the Pulpally Service Cooperative Bank.
The proceeds of crime, in the form of an inflated loan, were credited to Sajeevan Kollapallil’s bank account at Pulpally Service Cooperative Bank in Pulpally. By obtaining, possessing, and siphoning the Proceeds of Crime, Sajeevan Kollapallil has committed the offence of Money Laundering as specified in Section 3 of the PMLA, 2002, which is punishable under Section 4, and he was arrested on September 26, 2023. On September 27, 2023, he was brought before the Hon’ble Special Court, PMLA Kozhikode. The Hon’ble Court has granted ED custody until September 30, 2023. More research is being conducted.
