ED affidavit in High Court; Fraud in 12 co-operative banks beyond Karuvannur

KOCHI: In addition to Karuvannur, the ED's affidavit in the High Court stated that there was a huge fraud in 12 co-operative banks, including Ayyanthol, Thumbur, Nadakkal, Mavelikara, Munnilav, Kandala, Perungadavila, Mylapra, Chathannoor, Marayamuttam Service Cooperative Banks, BSNL Engineers Cooperative bank and Konni Regional Service Cooperative Bank.

Registrar of Cooperative Societies was aware of the irregularities found during the audit but turned a blind eye. This continued for many years. ED Assistant Director SG Kavitkar said that some political leaders are also involved and the investigation is at a critical stage.

This explanation is in the affidavit filed against the petition of the accused Ali Sabri against the confiscation of property in Karuvannur. It has been informed that the statements of many people have been recorded and the process of sending summons to the accused is in progress. The registrar, who said he would come with the requested documents, got a stay from the High Court and could not continue the investigation.

Investigations against other officers were also frozen. The practices in Karuvannur bank were against the Cooperative Societies Act. There was an irregularity in the issue of membership. No membership register or account books were maintained. The gold given as security for gold mortgage is fake. Gold bars were illegally accepted as collateral. Loans were sanctioned to employees in violation of rules. Land not within the bank's limits was also accepted as collateral.

The petitioner, Ali Sabri, took a loan of more than 6.6 crore rupees from Karuvannur Bank on behalf of himself and his family members. With this money, land was purchased in Pollachi and surrounding areas in Tamil Nadu. This land was transferred to Francis and his wife Rosy, natives of Vadanapilly and instead, one acre near Thrissur Medical College was bought. Later, land in Govindapuram was purchased but subsequently sold. The money was then invested in his own firm, Prime Electrical Contractors.