Ernakulam: The Enforcement Directorate (ED) has confiscated the properties of the accused in the Wayanad Pulpally Service Cooperative Loan fraud case under the Prevention of Money Laundering Act (PMLA), 2002. The attached assets worth Rs 4.34 crore include immovable properties belonging to KK Abraham, former President of the bank and K.P.C.C. former General Secretary, former Secretary, other Board members and Sajeevan KT, a private person.
According to an official statement, the ED initiated the investigation on the basis of an FIR registered by the Vigilance and Anti-Corruption Bureau (VACB), Wayanad, Kerala against the President of Pulpally Service Cooperative Bank and the Head of the Loan Section of the bank under various sections of the Prevention of Corruption Act, 1988. Following this, VACB, Wayanad filed a charge sheet against KK Abraham and 9 others.
The findings of the ED investigation uncovered that bank officials and members of its governing body approved increased loans without the consent or awareness of the loan applicants. This was achieved through the unlawful practice of presenting an overvalued estimation of properties used as collateral in the bank records. It was also found that, the excess amount resulting from the overvaluation was given to Sajeevan.
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. Sajeevan Kollapallil and KK Abraham who were arrested by ED are presently in judicial custody. Further investigation is under progress.