Money laundering: Investigation underway against 18 cooperative banks, says ED

KOCHI: The Enforcement Directorate (ED) has informed the High Court that it is conducting an investigation against 18 cooperative banks in the state. These banks have allegedly been involved in large-scale money laundering. Several assets have been seized, and multiple accused individuals have already been arrested, according to an affidavit submitted by P Vinod Kumar, the Kochi Zonal Deputy Director of the ED.

The division bench had previously directed the ED to disclose the number of cooperative banks under investigation. The court issued this directive while opining that cooperative banks failing to return deposits should be shut down.

The ED clarified that all 18 cooperative banks under investigation had illegally sanctioned loans. Loans were granted by inflating the value of pledged assets, and in some cases, multiple loans were issued against the same property. Additionally, loans were extended to ineligible individuals beyond the jurisdiction of the cooperative societies.