Kerala HC raps ED for delay in bank scam probe

KOCHI: Kerala High Court (HC) on Monday rapped the Enforcement Directorate (ED) for the inordinate delay in investigating Karuvannur Co-operative Bank scam that kicked a political storm in the state. Justice Devan Ramachandran made the comments while hearing a petition filed by investor Ali Sabri seeking directions to defreeze his accounts and release his confiscated properties.

The court expressed concern over the ED’S prolonged inquiry and asked what the agency was doing. Though ED’S counsel assured the court that the investigation was at its final phase, the Single Bench criticised the delays, pointing out the impact on investors.

The court demanded a time-bound investigation to ensure accountability and alleviate concerns of affected parties.

In an affidavit, the ED cited evidence of Sabri’s involvement in the irregularities connected to the bank. The ED disclosed details of Sabri’s alleged misconduct, including acquiring land in his wife’s name, obtaining loans from Karuvannur Co-operative Bank, and diverting funds for personal gains.

The agency highlighted Sabri’s loan acquisitions totalling Rs6.60 crore, implicating him in financial mismanagement.

The court directed the ED to expedite proceedings and present the charge sheet promptly. The ED affirmed progress in arrests and vowed to continue investigations diligently. The case will come up for hearing ater two weeks.

Last week ED informed the High Court that the investigation into the financial fraud in Karuvannur Service Co-operative Bank revealed that similar irregularities happened in 12 other co-operative societies in Kerala.

The service co-operative banks named are Ayyanthole, Thumboor, Nadackal, Mavelikkara, Moonilavu, Kandala, Perunkavilla, Mylapra, Chathannoor, Konni, and Marayamutam and BSNL Engineers Co-operative Bank.

The co-operative societies are engaged in granting illegal loans to the public and it was done without any approval from the Registrar of Co-operative Societies.