In a recent development, the Directorate of Enforcement (ED) has taken action against N Bhasurangan, the former President of Kandala Service Co-operative Bank, and his family members in connection with a money laundering case related to fraud at the bank. The ED has provisionally attached movable and immovable properties worth Rs 1.02 crore under the provisions of the Prevention of Money Laundering Act.
The attached properties include immovable assets, a car, and gold jewellery, according to an official statement released on Tuesday. The ED’s investigation was initiated based on multiple FIRs registered by the Maranalloor Police Station in Thiruvananthapuram against the President and Secretary of Kandala Service Co-operative Bank.
During the course of the investigation, the ED uncovered several irregularities in the management of the bank. It was revealed that around Rs 57 crore were involved in these irregularities, leading to massive asset impairment for the bank due to mismanagement and financial irregularities.
The ED had earlier arrested N Bhasurangan and his son Akhiljith JB on November 21, 2023, in connection with the ongoing money laundering investigation related to the fraud at Kandala Service Co-operative Bank. N Bhasurangan, as the overall in-charge of the bank as President, played a significant role in approving unauthorized loans to himself and his relatives. This was achieved by remortgaging the same property multiple times as collateral security, as stated in an official statement issued by the ED.
The ED’s statement highlighted that the former President’s actions had a detrimental impact on the bank’s financial health, leading to a substantial loss. The provisional attachment of properties is aimed at preventing further dissipation of assets pending the completion of the investigation.
As the investigation unfolds, further details regarding the extent of the financial irregularities and the involvement of other individuals may come to light. The ED continues its efforts to unravel the full scope of the fraud and bring those responsible to justice.
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