The Enforcement Directorate (ED) on Friday conducted searches at the Nemom Service Cooperative Bank in Thiruvananthapuram, where financial irregularities worth nearly ₹97 crores were detected earlier this year. The ED team from Kochi led the operation, which covered both the bank premisesand the residences of board members.
The case came to light after the bank failed to repay several depositors, prompting a detailed inquiry by the Cooperative Department. The investigation uncovered large-scale mismanagement and financial irregularities, resulting in losses amounting to several crores of rupees.
The Crime Branch, which had investigated the case, arrested three individuals, including the bank’s president and secretary, in connection with the scam.
As per the Cooperative Department’s findings, the bank has outstanding dues of around ₹35 crores, but only about half the amount is likely to be recoverable through legal means. Officials also failed to maintain proper records of depositors’ names and details, and the probe revealed a sharp rise in bad loans far exceeding permissible limits.
For the past three months, the Nemom Service Cooperative Bank has been under the control of an administrator.
