Irregularities found in 12 cooperative banks in state; ED tells High Court

KOCHI: The Enforcement Directorate (ED) informed the Kerala High Court that irregularities were found in 12 cooperative banks in the state. The ED informed this in the counter affidavit filed in the petition related to the Karuvannur fraud.

According to ED, irregularities were found in cooperative banks such as Kandala, Ayyanthole (Thrissur), BSNL Engineers Co-operative Bank, Chathannoor (Kollam), Mylapra (Pathanamthitta), Mavelikkara (Alappuzha), Moonnilavu (Kottayam), Konni, Perumkadavila and Marayamuttam (Thiruvananthapuram).

The irregularities were discovered during the investigation conducted following the Karuvannur Service Co-operative Bank fraud. There were irregularities in granting membership in cooperative societies. Irregularities were found in recording KYC and maintaining the membership register. C-class membership was granted against society by law. In the affidavit submitted to the High Court, the ED stated that widespread irregularities were found in providing collaterals for the loans.

The ED told the court that the investigation in the Karuvannur Cooperative Bank fraud case is at a critical stage. The role of political leaders came out from the statements of many people. The ED also stated that the process of sending summons to those mentioned in the affidavit submitted earlier is in progress.