ED searches 17 places in Kerala for alleged coop. bank fraud

The Enforcement Directorate (ED) on Wednesday conducted simultaneous searches at 17 premises across Kerala in connection with cases of alleged fraud in three cooperative societies/banks under the Prevention of Money Laundering Act (PMLA), according to a statement issued by the agency here on Thursday.

According to the ED, there are 27 cases involving nearly ₹550 crore. The searches were conducted in connection with an alleged fraud in Urban Co-operative Society Limited, Angamaly; Thennala Service Co-operative Bank Limited; and Kuttanellur Co-operative Bank.

The searches were conducted at five premises in Ernakulam and nearby areas linked to Roy Kurian, Kurian Joseph and Shiju, who are accused of alleged fraudulent loan transactions in Urban Co-operative Society Limited, Angamaly. The investigation was initiated on the basis of a First Information Report (FIR) registered by the Angamaly police.

“The investigation revealed that 422 loans worth about ₹96.74 crore were sanctioned against 108 properties belonging to 65 members. Serious irregularities were found in 159 loans worth about ₹33.82 crore, including absence of original title deeds, use of photocopies of loans, use of photocopies of loans sanctioned on behalf of ineligible or non-existent persons,” the statement said.

The ED claimed that incriminating documents related to fraudulent loan transactions, records relating to 38 properties, digital devices, mobile phones and other evidentiary materials were seized during the searches. Two fixed deposits of around ₹1.82 crore were also frozen.

In connection with the alleged fraud in The Thennala Service Co-operative Bank, search operations have been conducted at seven premises in Malappuram and Kozhikode linked to former officials and directors of the bank. The searched premises were linked to former MP president Kunji Moideen, former secretary KA Vasudevan Moosad, former UK president Saithalavi, former director VP Ali Hassan, former director NM Saithalavi, former director VP Raveendranath and former director Sajitha P.

The ED has started an investigation based on 63 FIRs registered by the Kottakkal police. According to the FIRs, the bank promised its customers higher interest rates and returns on fixed deposits. The total suspected proceeds from the crime are estimated at around 10 million crowns. The investigation reportedly found that Kisan credit card loans were sanctioned in the names of fictitious or benami members. The investigation also uncovered alleged irregularities related to real estate mortgage loans and the diversion and misuse of bank funds.

“During the search operations, incriminating documents and details relating to two properties were obtained. Freezing orders were also issued for 20 fixed deposits and bank accounts with a total balance of approximately ₹ 24.50 crore belonging to KA Vasudevan Moosad and his wife,” the statement said.

Searches were also conducted at five locations in Thrissur and adjoining areas linked to Kuttanellur Co-operative Bank and its former president, secretary and other officials who were allegedly involved in the scam. The investigation was initiated on the basis of four FIRs registered by the Ollur police station under the Thrissur city police.

According to the ED, the board members allegedly granted membership to individuals outside the bank’s jurisdiction and third parties and extended loans to them through illegal means by inflating the valuation of the mortgage securities and relying on forged documents. Incriminating digital evidence and documents related to loans allegedly disbursed with such illicit funds were seized during the searches, the agency claimed.

Published – 8 Oct 2026 22:59 IST