The Enforcement Directorate on Thursday informed a Division Bench of the Kerala High Court that large-scale money laundering had been carried out in various cooperative banks and societies and Enforcement Case Information Report (ECIR) had been registered in respect of 16 banks and two societies under the Prevention of Money Laundering Act.
The submission was made by the ED when a batch of writ appeals filed by some of the depositors in Mylapra Service Cooperative Bank and Kumplampoika Service Cooperative Bank in Pathanamthitta district seeking return of their deposits came up for hearing.
The court had last time directed the ED to inform it about the pending cases filed by the agency.
In a statement, the ED submitted that its investigation found that cooperative banks and societies had granted illegal loans with or without the knowledge of the borrowers. It was found that loans had been granted by overvaluing mortgaged property and even multiple loans on the same property.
Besides, it was also found that ineligible persons and persons living outside the limits of the society had been granted loans. The ED had taken action under the PMLA by confiscating the property involved in the illegal acts and arresting the offenders. It had come out during the probe that the societies did not initiate any recovery proceedings in respect of overdue loans when the offenders were holding office of the societies.
The ED also said it was taking all earnest efforts to restore properties to persons or claimants with a legitimate interest in property who may have suffered a quantifiable loss as a result of money laundering.
The societies and cooperative banks against which ECIR had been registered are Ayanthole Service Cooperative Bank, Thumboor Cooperative Bank, Nadakkal Cooperative Bank, Mavelikara Cooperative Bank, Moonnilavu Cooperative Bank, Kandala Cooperative Bank, Mylapra Cooperative Bank, Chathannur Regional Service Cooperative Bank, BSNL Engineering Cooperative Society, Konni Regional Service Cooperative Bank, Mariyamuttam Service Cooperative Society, Karuvannur Cooperative bank, Edamulakkal Cooperative Bank, Kollorvila Cooperative bank, Mugu Service Cooperative Bank, Anakkayam Cooperative Bank, Thennala Cooperative Bank, and Pulpally Cooperative Bank.
Published – January 30, 2025 07:55 pm IST