Crime Branch takes over Kandala investigation following ED probe

THIRUVANANTHAPURAM: The Crime Branch following an investigation by the ED has begun probing a Rs 101 crore fraud at Kandala Cooperative Bank. Employees at the bank's main branch were questioned yesterday. DYSP Rex Bobby Arvin is leading the investigation.

The government assigned the investor cheating probe to the Crime Branch on the recommendation of Kattakkada DYSP. Collection of statements and evidence collection began at 10 am yesterday and is ongoing.

Matured investments worth 6.43 crores remain outstanding. 110 people lodged complaints leading Maranallur police to register 59 cases. The accused include the president, secretary and those in charge during the period in question. Illegal activities caused a loss of 57.24 crores, with 34.43 crores in illegal loans to the former president, their relatives, bank employees and their relatives. Investors are demanding the defaulters auction collateral to promptly repay owed amounts.

Previously, the ED conducted a 40-hour raid on bank branches seizing deposit and loan documents along with computer hard disks containing transactions. These materials were sent for scientific testing. Notices were issued to depositors holding amounts between Rs 50 lakh and Rs 3 crore to verify the money's sources.