The Enforcement Directorate (ED) informed the Kerala High Court that 18 ECIRs have been registered against cooperative banks and societies in Kerala for investigating money laundering linked to financial irregularities. Of these, 16 are cooperative banks, while two are societies, media reports say.
Investigations revealed that these institutions granted illegal loans, sometimes without borrowers’ knowledge, by overvaluing mortgaged properties and issuing multiple loans on the same asset. The ED, acting under the Prevention of Money Laundering Act, 2002, has confiscated properties and arrested offenders.
The Kerala High Court’s directive came in response to appeals from depositors of Mylapra and Kumplampoika cooperative banks, seeking refunds after financial fraud cases.
