The Enforcement Directorate (ED) has reported alleged loan and fund irregularities during searches at about 17 premises across Kerala, as part of investigations into 27 cooperative society fraud cases involving approximately Rs 550 crore in suspected proceeds of crime.
The searches were conducted on Wednesday and the agency disclosed details on Thursday. The ED said the action covered three cooperative society fraud cases and produced documents, digital devices and property records that could help trace the movement and recovery of funds.
In the case linked to the Urban Co-operative Society in Angamaly, five premises in Angamaly and Ernakulam were searched. A police First Information Report alleges that office-bearers were involved in fraud of Rs 55 crore through fake loan applications, loans issued to ineligible persons and alleged misappropriation of funds.
The ED said it identified irregularities in 159 loans with a combined value of Rs 33.82 crore. It also seized documents relating to 38 immovable properties and digital devices. Two fixed deposits valued at approximately Rs 1.82 crore were frozen during the action.
The agency separately searched seven premises in the case involving Thennela Service Co-operative Society. According to the ED, Kisan Credit Card loans were sanctioned in the names of fictitious or benami members. The agency has estimated the suspected proceeds of crime in that case at around Rs 10 crore and froze 20 fixed deposits and bank accounts containing about Rs 24.50 lakh.
Five further locations in and around Thrissur were searched in connection with the Kuttanellur Co-operative Bank and its former president, secretary and other officials. The ED said board members had allegedly granted membership and loans to people outside the bank’s jurisdiction.
The cases highlight the role of cooperative societies in local financial administration, where elected or appointed office-bearers manage deposits, memberships and lending operations. The alleged use of fictitious borrowers, ineligible beneficiaries and loans issued beyond an institution’s jurisdiction points to failures in basic checks over borrower identity, eligibility and institutional oversight, although the allegations remain subject to investigation and legal proceedings.
The ED said cooperative society frauds have become a focus area for it as it seeks to accelerate the recovery of alleged proceeds of crime and restitution to victims. The agency’s latest action involves both financial tracing and asset preservation, with frozen deposits and seized property documents forming part of that process.
The investigations cover cases involving different societies and officials across Ernakulam, Angamaly, Thennela and Thrissur. The ED has not stated in the supplied report when the searches will conclude or whether further arrests or prosecutions will follow. The agency’s next steps are expected to include examination of the seized records, digital devices, loan files, bank accounts and property documents linked to the cases.
