In the Pulpally Service Cooperative Bank case, the Directorate of Enforcement (ED) has temporarily attached assets valued at Rs. 4.34 crore in accordance with the Prevention of Money Laundering Act (PMLA), 2002, as of 10.11.2023. The connected assets include real estate held by Sajeevan K. T., a private individual, other board members, and K K Abraham, who was the president and secretary at the time.
Based on a formal complaint (FIR) filed under different provisions of the Prevention of Corruption Act, 1988 by the Vigilance and Anti-Corruption Bureau (VACB), Wayanad, Kerala, against the President of Pulpally Service Cooperative Bank and the Head of the Loan Section of the bank, the ED began an investigation. VACB, Wayanad thereafter filed a charge sheet against K K Abraham and nine other people.
The results of the ED investigation showed that bank employees and members of its governing body approved increased loan amounts without the applicants’ knowledge or consent by covertly and illegally displaying in bank records an overvalued assessment of the properties offered as collateral. Sajeevan Kollappallil (a private individual) received the excess amount of loans approved due to this overvaluation. The Pulpally Service Cooperative Bank lost a total of Rs. 5.62 crores as a result of the applicant’s failure to repay the loans.
The profits of the crime were placed in Sajeevan Kollappallil’s bank account at Pulpally Service Cooperative Bank, Pulpally, in the form of an inflated loan. He then took the money out of the account and siphoned it off. Sajeevan Kollapallil and K K Abraham were earlier taken into custody by the ED and are currently in judicial custody. Further research is now being conducted.
