KOCHI: The Enforcement Directorate on Thursday informed the Kerala High Court that 18 ECIRs (Enforcement case information reports) have been registered against cooperative banks/societies in Kerala to investigate money laundering in connection with financial irregularities. Of these, 16 are cooperative banks and only two are societies.
Investigations revealed that all these cooperative establishments have been granting illegal loans with or without the borrowers’ knowledge. It is found that irregular loans have been granted, overvaluing mortgaged property and even multiple loans on the same mortgaged property, the ED said.
The central agency filed the report on the directive of a division bench, comprising Justices Amit Rawal and K V Jayakumar, regarding pending cases against cooperative societies. The bench issued the order on appeals filed by depositors of Mylapra and Kumplampoika cooperative banks in Pathanamthitta seeking refund of their deposit amounts following financial fraud cases in those societies.
