The Enforcement Directorate (ED) said on Monday that it has attached assets worth Rs 30.70 crore of Bijoy A.K, a commission agent of Karuvannur Service Cooperative Bank Ltd, in connection with a case under PMLA pertaining to fraud and cheating.
The attached assets include 20 immovable properties consisting of land and buildings in Kerala, two vehicles, cash worth Rs 3,40,000 and foreign currency equivalent to Rs 2,08,124. Apart from this, balance in 57 bank accounts belonging to Bijoy A.K and his firms worth Rs 35,86,990 has also been freezed.
“Bijoy A.K. was illegally sanctioned and disbursed loan to the tune of Rs 26.60 crore in cash without any collateral due to systematic conspiracy hatched and perpetuated by the secretary and committee members of the bank since 2010. The ED initiated a money laundering investigation on the basis of FIRs registered by Kerala Police under Section 420 of IPC. Kerala Police (Crime Branch) had registered more than 16 FIRs in Thrissur regarding fraud in Karuvannur Service Cooperative Bank Ltd,” the official said.
The money laundering investigation carried out so far has revealed that multiple bogus loans were sanctioned by the bank on the same property without the knowledge of the members of the society.
The bank was also under scrutiny of the Registrar of Cooperative Societies in Thiruvananthapuram. After an FIR was registered in July 2021, the Registrar in the audit found diversion of more than Rs 100 crore.
Earlier, the ED had conducted searches at six locations, including the branch of the cooperative bank in Irinjalakuda, Thrissur.