The Enforcement Directorate (ED) has attached assets worth ₹30.70 crore of Bijoy AK, a commission agent of Karuvannur Service Co-Operative Bank Ltd, in a bank fraud and cheating case. The Thrissur-based Co-operative Bank is controlled by the CPI-M and has been in news for the wrong reasons. The Kerala High Court, hearing a petition on a purported scam in the Bank, had with held disbursal of payments and directed the State government to prepare a plan for returning money due to depositors.

The attached assets, include 20 immovable properties consisting of land and building in Kerala, 2 vehicles (Innova and Audi), ₹5,48,124 cash ( including foreign currency equivalent to ₹2,08,124) seized from Bijoy AK’s house, and ₹35,86,990 held in his and firms’ 57 bank accounts.

Bijoy was allegedly given a loan to the tune of ₹26.60 crore in cash without any collateral due to an alleged systematic conspiracy hatched and perpetuated by the secretary and committee members of the Karuvannur Service Co-Operative Bank since 2010, the ED charged.

The ED initiated money laundering investigation on the basis of FIRs registered by Kerala Police under section 420 (cheating) of the Indian Penal Code. The Crime Branch of Kerala Police has registered more than 16 FIRs in Thrissur district regarding fraud in the Bank.

The money laundering investigation carried out so far has revealed that multiple bogus loans were sanctioned by the Bank on the same property without the knowledge of members of the Society, the ED said.

The loan amounts were disbursed in cash and also huge cash deposits were found in the books of account of the Bank. The Karuvannur Service Co-Operative Bank, pointed out the probing agency, was also under the scrutiny of the Registrar of Co-Operative Societies in Thiruvananthapuram. After an FIR was registered in July 2021, the Registrar in their audit found a diversion of more than ₹100 crore.

Related Topics
comment COMMENT NOW