Irregularities in 12 other coop. banks, ED tells HC

The Directorate of Enforcement (ED) on Friday informed the Kerala High Court that the investigation into the irregularities in Karuvannur Service Cooperative Bank is in a crucial stage and that the probe revealed similar irregularities in 12 other cooperative banks in the State.

The ED, in an affidavit, said it was noticed during the investigation that the activities of the bank were in violation of the provisions of the Kerala Cooperative Society Act.

Irregularities had resulted in a huge scam in the bank as well as losing public money. The probe was under progress. The statements of various persons were being recorded and they had revealed the involvement of certain political leaders.

The ED pointed out that the Registrar of Cooperative Society was aware of the scam in the society, but turned a blind eye to it. Prima facie involvement of the Registrar needs to be examined under Section 50 of the Prevention of Money Laundering Act, 2002. The malpractices for years had put money of the public at serious risk.

Banks under scanner

The probe revealed that similar irregularities had taken place in other societies, as evident from multiple FIRs registered against 12 cooperative banks. They are Ayyanthole Service Cooperative Bank, Thumboor Service Cooperative Bank, Nadakkal Service Cooperative Bank, Mavelikara Service Cooperative Bank, Moonilavu Service Cooperative Bank, Kandala Service Cooperative Bank, Perunkavilla Service Cooperative Bank, Mylapra Service Cooperative Bank, Chathannur Service Cooperative Bank, BSNL Engineers Cooperative Bank, Konni Regional Service Cooperative Bank, and Marayamuttom Service Cooperative Bank.

The affidavit also pointed out that those residing outside the working limits of the society had been given membership by quoting fake addresses.

The affidavit was submitted in response to a writ petition by Ali Sabri challenging the attachment order and the freezing of his bank accounts.