The Enforcement Directorate (ED) has conducted searches at around 20 premises in Kerala as part of three separate money-laundering investigations involving alleged financial irregularities in cooperative banking institutions. The searches were carried out on October 7 across locations linked to cases in Ernakulam, Malappuram and Thrissur, with the agency working in coordination with the state police.
The investigations involve the Angamaly Urban Service Co-operative Bank, Thennala Service Co-operative Bank and Kuttanellur Service Co-operative Bank. Together, the alleged proceeds of crime in the three cases have been estimated at approximately ₹92 crore.
Angamaly Urban Service Co-operative Bank
The largest of the three cases relates to the Angamaly Urban Service Co-operative Bank in Ernakulam. The ED is investigating alleged cheating and forgery involving loans reportedly sanctioned on forged applications, applications without required documentation and applications made in the names of non-members.
The alleged proceeds of crime in this case are estimated at around ₹55 crore. Reports said the ED searched several premises in Ernakulam, including locations associated with people linked to the case.
Thennala Service Co-operative Bank
The second investigation concerns the Thennala Service Co-operative Bank in Malappuram. The case involves allegations of fraudulent loan sanctions, misappropriation of funds and inducement of depositors through promises of higher returns.
The alleged proceeds of crime have been estimated at approximately ₹10 crore, with ED teams conducting searches at multiple locations connected with the investigation.
Kuttanellur Service Co-operative Bank
The third case involves Kuttanellur Service Co-operative Bank in Thrissur, where alleged financial irregularities are estimated at around ₹27 crore.
The investigation relates, among other allegations, to the purported transfer of mortgaged properties without the consent of their owners and depositors. The ED searched several premises linked to the bank and individuals associated with the case.
The latest searches highlight the continuing scrutiny of financial governance and internal controls in parts of Keralam’s cooperative banking sector. The three cases involve different alleged mechanisms of financial irregularity—from questionable loan sanctions and alleged inducement of depositors to disputed property transfers.
As per news reports, the ED’s searches form part of ongoing investigations under the Prevention of Money Laundering Act (PMLA).
For Keralam’s large cooperative network, the developments underline the importance of robust loan appraisal, documentation, asset controls, depositor protection, internal audit and effective governance mechanisms. Keralam’s cooperative department itself maintains a Cooperative Audit Monitoring and Information System (CAMIS) for monitoring cooperative audits and related information across the state’s societies.
