The Directorate of Enforcement (ED) arrested Sajeevan Kollapallil, in connection with an ongoing investigation in a money laundering case connected to the Pulpally Service Cooperative Bank in the district.
The ED initiated the investigation on the basis of an FIR registered by the Vigilance and Anti-Corruption Bureau, Wayanad, against the governing body members and officials of the bank.
The ED investigation revealed that the bank officials and its governing body members sanctioned loans without the consent and knowledge of the applicants by overvaluing the properties offered as collateral. They also sanctioned excess amount which was siphoned off and credited to account of Sajeevan at the bank. The loans were not repaid by the applicants and thus resulted in the loss of ₹5.62 crore for the bank.
Sajeevan was produced before the Special Court, Prevention of Money Laundering Act, Kozhikode, on Wednesday. The Court granted the ED his custody till Saturday.
Earlier the Pulpally police had arrested Sajeevan in connection with the death of a farmer, who was a complainant in the fraud case, and also on a case filed by an elderly couple at Pulpally.
The couple had accused a few directors of the bank of cheating them and alleged that Sajeevan was the mastermind behind the scam.
The police had also arrested K.K. Abraham, former general secretary of Kerala Pradesh Congress Committee and former president of the bank; K.T. Ramadevi, secretary of the bank; and V.M. Poulose, a former director of the bank and mandalam committee president of the Congress at Pulpally in connection with the bank fraud.
Sajeevan’s name was mentioned in the suicide note of the farmer. He is also an accused in several vigilance cases registered in connection with the bank fraud.