ED finds ₹33.82 crore in irregular loans across 159 cases at Urban Co-op

It matters to citizens as it details the recovery of assets and investigation into frauds involving approximately ₹550 crore in proceeds of crime, affecting thousands of depositors and members.

Who it concerns: The document concerns the Directorate of Enforcement (ED), the Kerala Police, and the following entities and individuals: Urban Co-Operative Society Ltd. (Angamaly) and its office bearers (Roy Kurian, Kurian Joseph, Shiju); Thennala Service Co-operative Bank Ltd. (Malappuram) and its former office bearers (M.P. Kunji Moideen, K.A. Vasudevan Moossad, U.K. Saithalavi, V.P. Ali Hassan, N.M. Saithalavi, V.P. Raveendranath, Sajitha P.); and Kuttanellur Service Cooperative Bank (Thrissur) and its officials (including Rikson Prince). It also affects the public members and customers of these institutions who are victims of the alleged frauds.

What the ED says it did

• ED conducted simultaneous searches at 17 premises across three cases under the Prevention of Money Laundering Act (PMLA), 2002.
• In the Urban Co-Operative Society case, ED seized documents related to 38 immovable properties and froze two Fixed Deposits worth approximately ₹1.82 Crore; the FIR alleged fraud of ₹55 Crore involving fake loan applications and misappropriation.
• In the Thennala Service Co-operative Bank case, ED issued freezing orders for 20 Fixed Deposits/Bank Accounts with an aggregate balance of ₹24.50 Lakh linked to K.A. Vasudevan Moossad and his wife; the FIRs alleged failure to pay FD returns and disbursement of fake loans to non-existent individuals.
• In the Kuttanellur Co-op Bank case, ED seized digital evidence and documents; the FIRs alleged that properties were mortgaged without owners' consent using forged documents, causing a financial loss of more than ₹27 Crore to the bank.
• The total suspected proceeds of crime across the 27 cases under investigation are approximately ₹550 Crore.

Also in the document

• ED has identified co-operative society/bank frauds as a focus area to ensure faster recovery of proceeds of crime and restitution to victims.
• Investigations in the Urban Co-Operative Society case revealed that 422 loans totaling ₹96.74 Crore were sanctioned against 108 properties, with serious irregularities found in 159 loans worth ₹33.82 Crore.
• In the Thennala case, Kisan Credit Card loans were found to be sanctioned in the names of fictitious or benami members beyond prescribed limits.
• The Kuttanellur case involves allegations of granting membership to individuals outside the bank’s jurisdictional limits and inflating collateral valuations.