KOCHI: The Enforcement Directorate (ED) has alleged that top political leaders are involved in the fraud and black money transaction of more than 200 crore rupees in the Kandala Cooperative Bank. The arrested former bank president N Bhasurangan and his son Akhiljiht have been remanded in ED custody by the special court till tomorrow.

ED informed that the fraud will exceed 200 crores in the application submitted seeking the custody of the accused. It was reported 101 crore in the preliminary investigation. ED told the court that a detailed investigation was required and that Bhasurangan and Akhiljith were not cooperating with the investigation. The accused have close relations with the ruling front and elites. In order to know their relationships and transactions, they need to be interrogated in detail. ED said that Kandala was similar to the Karuvannur bank fraud.

Apart from former bank president Bhasurangan and employees, top political leaders are also involved. Large loans were given to individuals and institutions recommended by superiors, without any collateral. Huge sums have also been given as loans against properties of very low value. Loans were granted illegally, including to relatives. Their failure to repay the loan put the bank in a huge loss and crisis.

ED is examining in detail the transactions and loans granted by Bhasurangan during the 30 years of his presidency. Only when this is completed will the extent of the scam become clear. ED has also received information that huge amount of black money was laundered under the guise of loans and deposits.

After being interrogated throughout the day on Tuesday at the ED office in Kochi, the arrest process started at 9 pm. After completing the medical examination at 3 pm yesterday, the accused was produced in the Kaloor court, where Prohibition of Money Laundering (PMLA) is being considered. The investigation is headed by Assistant Director Satyaveer Singh.