The Enforcement Directorate (ED) has taken into custody N. Bhasurangan, the former president of Kandala Service Co-operative Bank in Kerala, along with his son Akhiljith J.B. The arrest is linked to a money laundering case involving fraudulent activities within the co-operative bank.
Bhasurangan, who held a significant position as the overall in-charge of the bank, played a pivotal role in approving various unauthorized loans. The ED initiated the arrest following an investigation based on FIRs filed by the Maranalloor Police Station in Trivandrum against the bank’s President and Secretary.
According to the ED, their probe uncovered multiple irregularities in the bank’s management, leading to a substantial financial loss. Bhasurangan, heading the bank’s governing body, allegedly sanctioned loans totaling Rs 57 crore, contributing to severe asset impairment.
The investigation also revealed that Kandala Service Co-operative Bank extended a loan of Rs 2.04 crore to Maranalloor Ksheera Vyavsaya Sangam Limited, an entity under Bhasurangan’s management. Furthermore, it was discovered that several loans, amounting to crores, were deceitfully granted to Bhasurangan’s family members and relatives, using the same properties as collateral.
Surprisingly, despite holding the position of President, Bhasurangan’s family and relatives overdue loans faced no recovery proceedings from the bank. The ED alleges that this lack of action was a deliberate oversight.
Bhasurangan and Akhiljith were presented before a Special Judge in Ernakulam, Kerala, and subsequently remanded to ED custody for three days. The ED’s efforts in unraveling the financial irregularities within Kandala Service Co-operative Bank underscore the importance of stringent measures against corruption in financial institutions.
