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The Enforcement Directorate on Monday attached assets worth 30.70 crores of Bijoy AK, Commission Agent of Karuvannur Service Co-operative Bank Ltd under the Prevention of Money Laundering Act (PMLA), 2002 in a fraud and cheating case. The agency claimed that the accused illegally sanctioned and disbursed a loan to the tune of Rs. 26.60 Crore in cash without any collateral due to a "systematic conspiracy".

“Bijoy A.K. was illegally sanctioned and disbursed a loan to the tune of Rs. 26.60 crore in cash without any collateral due to a systematic conspiracy hatched and perpetuated by the Secretary and Committee Members of the Bank since the year 2010," the Enforcement Directorate said in a press release.

The attached assets include 20 immovable properties consisting of land and building in Kerala, 2 vehicles, Rs. 5,48,124 in both Indian and foreign currency, and balances in 57 bank accounts of Bijoy and his firms which account for Rs. 35,86,990.

The central agency claimed that the investigation so far has unveiled multiple bogus loans sanctioned by the bank on the same collateral and the members of the society were also unaware of the loans.

“The money laundering investigation carried out so far has revealed that multiple bogus loans were sanctioned by Bank on the same property without the knowledge of members of Society. The loan amounts were disbursed in cash and also huge cash deposits were found in books of account of Bank," the agency said.

“The Karuvannur Service Co-Operative Bank was also under the scrutiny of the Registrar of Co-Operative Societies in Thiruvananthapuram. After FIR was registered in July 2021, the Registrar in their audit found a diversion of more than Rs. 100 Crore," the ED said in a release.

ED initiated a money laundering investigation based on FIRs registered by Kerala Police under section 420 of IPC, 1860. Kerala Police (Crime Branch) has registered more than 16 FIRs in Thrissur District regarding fraud in Karuvannur Service Co-Operative Bank Ltd.

On 10 October, the agency conducted searches at 6 locations including the Branch of the Cooperative Bank in Irinjalakuda, Thrissur.

 

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