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Kochi, Nov 10 (IANS) The Enforcement Directorate (ED) has seized various incriminating documents and property-related papers following search operations at five locations in Thiruvananthapuram in connection with a money-laundering probe against Nemom Service Cooperative Bank Ltd and others for allegedly defrauding depositors. An official gave this information on Monday.
The ED raid, which was conducted on November 7, lasted for several hours while armed officials belonging to the central forces stood guard.
The Kochi zonal office of the ED, which is leading the investigation under the Prevention of Money Laundering Act (PMLA), 2002, reported the seizure of various incriminating documents, property-related papers and 15 original fixed deposit receipts worth around Rs 50 lakh.
The federal agency said in a statement that the investigation would be expedited.
The search marks a new phase in the ongoing investigation into financial irregularities estimated at around Rs 100 crore at the cooperative bank, which was earlier handled by a CPI(M)-led panel.
The development, coming just weeks before local body elections in Kerala, has attracted political attention.
The bank came under scrutiny earlier this year after several depositors complained of non-payment of their savings, following which the cooperative department started a probe.
The investigation, conducted under Section 65 of the State Cooperative Rules, found large-scale irregularities in loan disbursement, unsecured advances and mismanagement of deposit schemes.
According to the investigation report, the bank had given a loan of Rs 34.26 crore with a guarantee of only Rs 15.55 crore.
Out of Rs 10.73 crore collected under the monthly investment scheme, only Rs 4.83 crore is left in the bank accounts.
The Co-operation Department held several former secretaries and board members responsible for losses of over Rs 60 crore, including Rs 31.63 crore due to one official alone.
The investigators also found that many loans were sanctioned in the names of relatives of bank officials, with little chance of recovery.
Excessive interest payments on deposits and unrecorded transactions deepened the crisis.
Earlier, the Economic Offenses Wing of the Crime Branch had arrested three people.
The bank, which is now under an administrator, owes about Rs 35 crore, although recovery is expected to be limited.
The ED intervention comes after growing protests from investor groups demanding return of deposits and stricter monitoring of Kerala’s co-operative banking sector, which has faced growing allegations of political interference and mismanagement.
–IANS
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