ED conducts searches at three co-operative banks in Keralam
The Enforcement Directorate (ED) on Wednesday, October 7, 2026, carried out searches at multiple locations across Keralam as part of an ongoing probe into alleged financial fraud and money laundering linked to three co-operative banks in Ernakulam, Thrissur and Malappuram districts.
Overview of the investigation
The searches were conducted in connection with suspected irregularities at Angamaly Urban Service Co-operative Bank in Ernakulam, Thennala Service Co-operative Bank in Malappuram and Kuttanellur Service Co-operative Bank in Thrissur. According to information available with the investigating agency, the cases under scrutiny involve large-scale loan fraud, misappropriation of funds and alleged cheating by office-bearers through unauthorised transfers of mortgaged properties.
Angamaly Urban Service Co-operative Bank, Ernakulam
Three units from the ED’s zonal office in Kochi participated in searches at multiple locations tied to the probe into Angamaly Urban Service Co-operative Bank. The alleged offences at this institution span more than two decades, with investigators citing suspected forgery and resultant cheating estimated at approximately ₹55 crore since July 7, 2002.
Preliminary findings point to loans sanctioned on forged applications and on applications lacking requisite documentation. Investigators also allege that loans were issued in the names of non-members, indicating systemic deviations from established co-operative banking norms. In connection with the same matter, the Kerala Police had earlier registered cases against 14 governing committee members and six employees—both former and serving—linked to the bank’s operations.
Thennala Service Co-operative Bank, Malappuram
In the case of Thennala Service Co-operative Bank, the alleged fraud is pegged at around ₹10 crore. The irregularities under investigation reportedly include fraudulent loan sanctions and the misappropriation of funds. As part of Wednesday’s action, ED officials searched nearly seven premises in Kozhikode and Malappuram that are believed to be connected to the case.
Kuttanellur Service Co-operative Bank, Thrissur
The ED also carried out searches at around six premises linked to Kuttanellur Service Co-operative Bank in Thrissur. The alleged fraud at this institution amounts to about ₹27 crore and centres on accusations that office-bearers facilitated the transfer of mortgaged properties without obtaining the consent of the property owners and depositors—transactions that would constitute serious breaches of fiduciary responsibility if established.
Key developments and next steps
Wednesday’s coordinated searches across the three cases are part of a broader effort to gather documents and other materials relevant to the ED’s money-laundering investigation. The actions follow police cases already registered in at least one of the matters, and are intended to trace the flow of funds, identify beneficiaries and ascertain the extent of alleged wrongdoing. Officials have not immediately disclosed the specifics of what was seized during the searches.
The ED’s inquiries are continuing. Further action is expected to proceed in accordance with the findings of the searches and the ongoing examination of financial records associated with the three co-operative banks.
Significance
The latest searches highlight sustained scrutiny of co-operative banking practices in Keralam, particularly around loan sanction procedures, documentation standards and the handling of secured assets. With the sums involved running into several crores across multiple districts, the outcome of the ED’s investigation will be closely watched by depositors, regulators and the wider co-operative sector.
