New Delhi: The Enforcement Directorate (ED) on Friday said that it has arrested K.K. Abraham, former president of the Pulpally Service Cooperative Bank in Kerala’s Wayanad in connection with an ongoing investigation in a money laundering case of fraud.
As per ED, Abraham happened to be the overall In-charge of the bank as President who played a key role in sanctioning various loans by overvaluing the properties to the applicants.
ED had initiated investigation on the basis of an FIR registered by the Vigilance and Anti-Corruption Bureau(VACB), Wayanad, Kerala against the Governing Body members and bank officials of the Pulpally Service Cooperative Bank.
“Investigation revealed that bank officials and its governing body members sanctioned enhanced loans without the consent and knowledge of the loan applicants by overvaluing the properties offered as collateral and the over and above amount of the loans were given to Sajeevan Kollappallil (private person),” the ED said in a statement.
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 overvalued loan were deposited in the bank account of Kollappallil, maintained with Pulpally Service Cooperative Bank, Pulpally and subsequently withdrawn in cash and sipphoned off. Kollappallil was arrested by ED on September 26 and he is presently in judicial custody,” said the ED official.
The ED investigation further revealed that Kollapallil utilised the said PoC for ginger farming in Karnataka where K.K. Abraham was agreed for profit sharing of 10 per cent without any investment.
“Unexplained cash deposits in bank account of K.K. Abraham and transfer of funds from the account of into his bank account Kollapallil have been revealed during investigation. Since Abraham had knowingly assisted Kollappallil in acquiring and using the PoC and thereby committed the offence of money laundering as defined under section 3 of PMLA, 2002,” said the official.
“Abraham was arrested on November 7 and court had granted his two days custody to ED,” the official added.