Thrissur: The Enforcement Directorate (ED) has reopened its investigation into alleged financial irregularities totalling Rs 143 crore at the Thrissur District Co-Operative Bank Ltd. 

After the irregularities came out, a case was registered by the Cooperative Vigilance in 2018. However, no significant progress was made in the investigation in the following years. Following this, ED decided to look into the allegations. 

Also Read

placeholder

K'taka landslide: Skeletal remains recovered from Gangavali River, suspected to be of human

placeholder

Silent struggles: Technopark employees face work-life imbalance amid WFH stress

The irregularities allegedly happened between 2013 and 2017 while the United Democratic Front (UDF) was in power at the bank. Investigations revealed that the bank had failed to properly sanction or recover loans during the period. While Vigilance had registered a case and initiated action, no further progress was made. Evidence collection and the presentation of a charge sheet were also not completed.

The case became more controversial when a member of the bank’s board of directors, defected to the Left Democratic Front (LDF). When the LDF assumed power in Kerala, the Vigilance investigation slowed down, eventually coming to a halt. 

Complaints about the irregularities had previously been lodged without any substantial results. It was only after a politician raised the issue with the ED that the probe gained momentum.

In its preliminary investigation, the ED found that the bank's management body, along with certain employees, had illegally disbursed loans totalling Rs 46.5 crore. Some of these funds were reportedly diverted and there were no efforts made to recover the money from the defaulting institutions.

Money diverted to other institutions

The ED has also discovered that some of the key individuals involved in the scam may have diverted funds to a multi-state cooperative. This institution is also under surveillance.