ED inspects Kandala Service Cooperative Bank a year after first raid, more checks underway

Maranalloor (Thiruvananthapuram): Kandala Service Cooperative Bank is once again under the scrutiny of the Enforcement Directorate (ED). Officials from the central agency arrived at the bank on Wednesday and conducted inspection.

On November 8 last year, ED officials had carried out a similar inspection at both the bank and the residence of its former president, N. Bhasurangan. Following this, Bhasurangan and his son were arrested by the ED and remained in jail. The agency's initial action came after a complaint alleged that the bank’s former president, officials, and staff had been involved in financial irregularities and had illegally amassed wealth. The new development comes a year after the initial inspection.

It is learnt that the ED has now returned for another round of checks. The bank’s operations are currently overseen by an administrative committee. Although the bank is operational, it has still not been able to refund the deposits to its customers. The ED appears to be preparing for the next phase of inspection following the collection of the bank’s financial records. The ED’s actions suggest that the investigation into the allegations against the bank is ongoing.

On Wednesday morning, ED officials from Kochi requested all bank records. They also instructed the bank officials to make available all documents related to the depositors the following day for inspection. Additionally, the ED has directed that individuals whose deposits have not been returned by the bank should appear before it. In the first phase, 64 depositors who lodged complaints with the Maranalloor Police were called in for questioning. The ED will review their deposit accounts and related documents on Thursday and Friday.

Last year, inspections were conducted at the bank’s main branch in Thoongampara, Maranalloor, as well as at the homes of the former president, secretaries, and collection agents associated with the bank. Following this, only Bhasurangan and his son were arrested.