THIRUVANANTHAPURAM: In the midst of intensifying investigations by the Enforcement Directorate (ED) into Co-Operative banks and societies in Kerala, investors are rushing to withdraw their money from their accounts. Recently, the ED conducted raids at several co-operative bank branches in connection with money laundering and the Karuvannur Cooperative Bank scam case.
It has been reported that investors withdrew lakhs of rupees from their accounts in most cooperative societies in Kerala just yesterday alone. Many depositors in the Co-Operative banks of Kerala were attracted by the higher interest rates and the perceived secrecy for safeguarding unaccounted funds.
Most of the cooperative societies in Kerala are under the rule of the CPI(M). Investors became increasingly concerned as the ED’s investigation extended to senior CPI(M) leaders in Kerala. It is reported that a majority of depositors with more than Rs 50,000 in their accounts have completely withdrawn their money.
However, as depositors came forward to withdraw their money in large numbers, co-operative bank employees faced difficulties in convincing them that the bank is not facing any financial crisis. Nevertheless, the banks are indeed experiencing a crisis due to the unexpected withdrawal of funds. At the same time, 45 co-operative bank branches in Kerala are under scrutiny by the ED.
It is noteworthy that the ED reported to the Special Prevention of Money Laundering Act (PMLA) court that Satheesh Kumar P, who was arrested in connection with the multi-crore Karuvannur Cooperative Bank scam, was a benami of a former MP, a sitting MLA, and high-ranking police officers.
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