On 18.09.2023, the Directorate of Enforcement (ED) conducted search and survey operations under the PMLA, 2002 at 09 locations across the State of Kerala as part of an investigation against benamis and beneficiaries who syphoned off bank funds totaling more than Rs. 150 crores from Karuvannur Service Cooperative Bank Ltd.
An ED probe was launched on the basis of Police FIRs stating that the accused had cheated the government by committing errors in the sanctioning procedure. According to an ED investigation into the fraud, loans were disbursed in cash to non-member benamis by mortgaging properties of poor members without their knowledge and laundered to the benefit of the accused on the instructions of District level leaders of a political party and committee members who governed the Karuvannur Service Cooperative Bank.
During the searches and survey operations, 800 grams of gold and Rs. 5.5 lakh were seized from Sunil Kumar’s residence, 05 documents worth approximately Rs. 15 crore were seized from Anilkumar’s residence, and 19 documents worth more than Rs. 5 crore were seized from Deepak S.’s residence. Evidence in the shape of benami property documents dealt with by Satheesh Kumar of about 25 properties were collected from the premises of document writers.
Based on the findings of the inquiry, a Provisional Attachment Order for Rs. 30 Crores was issued against the properties of A.K. Bijoy, who obtained loans by faking papers in collusion with the Bank Manager and the office bearers of the said Karuvannur Service Cooperative Bank. Previously, searches were performed at 11 locations, and on September 4, 2023, the ED detained two persons, Sathish Kumar and Kiran P P, under the terms of the PMLA, 2002. More research is being conducted.
