The ED has attached assets worth Rs.4.34 Crore in the Pulpally Service Cooperative Bank case under the Prevention of Money Laundering Act (PMLA). The attached assets include immovable properties belonging to K K Abraham, the then President, then Secretary, other Board members and Sajeevan K T, a private person, says a press release issued by the ED.
The ED initiated investigation on the basis of an FIR registered by Vigilance and AntiCorruption Bureau (VACB), Wayanad.
The investigation revealed that bank officials and its governing body members sanctioned enhanced loans without the consent and knowledge of the loan applicants by surreptitiously and illegally showing overvalued estimation of properties offered as collateral in the bank record and the over and above amount of the loans sanctioned on the basis of overvaluation given to Sajeevan Kollappallil (Private Person).
The loans were not repaid by the applicants and thus caused a total loss of Rs.5.62 Crore to the Pulpally Service Cooperative Bank.
The proceeds of crime in the form of an overvalued loan were deposited in the bank account of Sajeevan Kollappallil, maintained with Pulpally Service Cooperative Bank, Pulpally and subsequently withdrawn in cash and siphoned off. Earlier, Sajeevan Kollapallil and K K Abraham were arrested by ED and they are presently in judicial custody.