THRISSUR: The Enforcement Directorate (ED) conducted a series of raids across 11 locations in Thrissur and Ernakulam districts, focusing on the activities of Abdul Salam, the former president of the Thrissur District Cooperative Bank. This operation is part of an ongoing investigation into alleged fraudulent loan sanctions and money laundering associated with the now-merged Kerala State Cooperative Bank.
According to reports, the raids were executed under the provisions of the Prevention of Money Laundering Act (PMLA) of 2002, and various significant documents were recovered during the operation. The ED’s inquiries stemmed from FIRs filed by the Vigilance and Anti-Corruption Bureau (Vigilance) in Thrissur under multiple clauses of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 1988.
The investigation has revealed that Abdul Salam had allegedly engaged in a criminal conspiracy with other bank officials to sanction loans amounting to Rs 100 crore illegally. These loans were reportedly granted to several individuals and institutions in violation of the bank’s loan manual norms.
The ED’s press release indicated that the raids targeted Abdul Salam’s residence as well as the offices and homes of multiple loan recipients. During these operations, several crucial documents linked to the illegal loan sanctions and the diversion of loan proceeds were seized. Investigations revealed that loans worth approximately Rs 46.5 crore were sanctioned during Salam’s tenure as president from 2013 to 2017, with the proceeds being misappropriated for unauthorized purposes.
The fallout from these actions has led to a staggering Non-Performing Asset (NPA) situation, with overdue amounts reaching Rs 143.42 crore as of June 30, 2024. This mismanagement has not only caused substantial losses to the District Cooperative Bank in Thrissur but has also allegedly benefited the loan recipients who secured these illicit loans.
In addition to the loans, the ED has identified various immovable properties belonging to the defaulting loan recipients, with an estimated current market value of Rs 70 crore, in accordance with the PMLA provisions. Further inquiries are ongoing as the ED continues to unravel the extent of the fraud.
The recent ED actions are closely related to inquiries into a larger Rs 343 crore fraud case involving the Karuvannur Cooperative Bank, which is reportedly controlled by the Communist Party of India (Marxist) (CPM). Around 40 officials participated in the raids, highlighting the seriousness of the investigations into cooperative bank operations and the allegations of money laundering.
