Wed Dec 04 15:14:45 UTC 2024: ## Kerala High Court Orders ED Probe into Cooperative Bank Fraud
**Kochi, Kerala – December 4, 2024** – The Kerala High Court’s Division Bench has ordered the Enforcement Directorate (ED) to launch a money laundering investigation into the financial fraud at the Kollam-based Edamulackal Service Cooperative Bank. The order follows an appeal by a 71-year-old cancer patient, Rajendran Unnithan S., who sought the release of his fixed deposit.
The court described the situation as a case of “aggrandizement” by the bank’s former committee, accusing them of squandering depositors’ funds. Many depositors are facing significant financial hardship, with some suffering from serious illnesses. The court’s decision overrides a single judge’s earlier order that focused on the bank’s revival and repayment priorities.
While a single judge had directed the bank to develop a revival plan, the Division Bench deemed this insufficient, citing the severity of the fraud and the fact that embezzled funds have been transferred overseas. The government informed the court that a First Information Report (FIR) had already been registered concerning the fraud. The ED’s investigation will now focus on tracing and recovering the misappropriated funds.
First Piper 