Kochi: The Enforcement Directorate (ED) informed the Kerala High Court on Thursday that its investigation has led to the registration of 18 Enforcement Case Information Reports (ECIRs) under the Prevention of Money Laundering Act (PMLA). These involve 16 cooperative banks and two societies. The ED alleges these institutions granted illegal loans and engaged in financial irregularities.

Illegal loans and property overvaluation uncovered

The ED found that these cooperative banks and societies had granted loans without borrowers' knowledge, overvalued mortgaged property, and issued multiple loans on the same asset. These issues prompted the ongoing investigation. The findings were presented after a Kerala High Court directive, which followed appeals from depositors of Mylapra and Kumplampoika cooperative banks in Pathanamthitta, seeking the return of their money amid fraud investigations.

Money laundering and asset seizures

In an affidavit, P Vinod Kumar, Deputy Director of the ED Kochi Zonal Office, explained that loans were issued beyond the allowed limits and to ineligible borrowers. This led to widespread money laundering. The ED has seized assets tied to the fraud and made arrests in the case.

Failure to recover overdue loans

The ED also reported that several of the cooperative societies involved have not begun recovering overdue loans, while offenders continue to hold positions within these institutions. The agency aims to return the properties of people who lost money due to the fraud.

List of cooperative banks and societies under investigation:

  1. Ayanthole Service Cooperative Bank
  2. Thumboor Cooperative Bank
  3. Nadakkal Cooperative Bank
  4. Mavelikkara Cooperative Bank
  5. Moonnilavu Cooperative Bank
  6. Kandala Cooperative Bank
  7. Mylapra Cooperative Bank
  8. Chathannoor Regional Service Cooperative Bank
  9. BSNL Engineering Cooperative Society
  10. Koni Regional Service Cooperative Bank
  11. Mariyamuttam Service Cooperative Society
  12. Karuvannur Cooperative Bank
  13. Edamulakkal Cooperative Bank
  14. Kolloorvila Cooperative Bank
  15. Anakkayam Cooperative Bank
  16. Mugu Service Cooperative Bank
  17. Thennala Cooperative Bank
  18. Pulpally Cooperative Bank