The Directorate of Enforcement (ED), Kochi Zonal Office, has frozen fixed deposits and bank accounts worth approximately Rs 2.07 crore following simultaneous searches at 17 premises linked to three cooperative banking fraud cases in Kerala. The searches were conducted on October 7, 2026, as part of efforts to trace alleged proceeds of crime and facilitate recovery for affected cooperative members and depositors.
According to an ED press release dated October 8, the agency is investigating 27 cases involving alleged fraud in cooperative societies and banks, with suspected proceeds of crime and cheating amounting to approximately Rs 550 crore. Thousands of members and depositors have reportedly suffered losses.
The latest action covered the Urban Co-operative Society, Angamaly; Thennala Service Co-operative Bank in Malappuram; and Kuttanellur Service Co-operative Bank in Thrissur.
In the Angamaly case, investigators examined 422 loans worth approximately Rs 96.74 crore, secured against 108 immovable properties belonging to 65 members. Serious irregularities were identified in 159 loans amounting to around Rs 33.82 crore. These included missing original title deeds, unregistered mortgages, incomplete applications and loans allegedly sanctioned to ineligible or non-existent borrowers.
During the searches, the ED seized documents relating to 38 immovable properties, digital devices and other evidence. Two fixed deposits worth approximately Rs 1.82 crore were frozen. The investigation originated from a Kerala Police FIR reporting an alleged fraud of around Rs 55 crore.
The Thennala Service Co-operative Bank case concerns allegations of failure to repay fixed deposits and promised returns, besides suspected fictitious Kisan Credit Card (KCC) loans and land-mortgage loans. The suspected proceeds of crime are estimated at approximately Rs 10 crore.
According to the ED, certain loans were allegedly sanctioned in fictitious or benami names, beyond prescribed limits and without mandatory approvals. The funds were reportedly diverted towards deposits, repayment of earlier liabilities and other unauthorised transactions. The agency issued freezing orders against 20 fixed deposits and bank accounts holding approximately Rs 24.50 lakh and recovered documents relating to two immovable properties.
In the Kuttanellur case, investigators are probing allegations that customers’ properties were mortgaged without their knowledge or consent to secure loans for third parties. The alleged transactions involved forged documents, including death certificates, identity papers and property valuation reports.
The ED stated that irregular membership approvals, inflated collateral valuations and suspected document forgery caused financial losses exceeding Rs 27 crore to the bank. Documents and digital evidence linked to the suspected illegal loan transactions were seized during the searches.
The agency said investigations into all three cases are continuing, with the focus on tracing alleged proceeds of crime and securing restitution for affected cooperative members and depositors.
