ED Raids Kerala-Based Co-operative Bank in ₹50 Crore Misappropriation Case under PMLA
The agency confirmed that the seized materials are being examined to trace the money trail and identify beneficiaries of the alleged diversion of public funds
The Directorate of Enforcement ( ED ), Kochi conducted search operations on November 7, 2025, at five locations in Thiruvananthapuram in connection with a money laundering investigation against M/s Nemom Service Co-operative Bank Ltd., Nemom, and others under the Prevention of Money Laundering Act (PMLA), 2002.
According to the ED, the investigation started from 24 FIRs registered by the Kerala Police alleging that the Managing Committee of the bank misappropriated public funds and failed to return deposits collected from the public, thereby causing huge financial losses to depositors.
The offences registered under Section 420 IPC and Section 318(4) of the Bharatiya Nyaya Sanhita, 2023, are Scheduled Offences under Part A of the Schedule to PMLA, 2002.
Statements recorded under Section 50 of PMLA revealed that depositors were denied withdrawals despite repeated requests, increasing concerns over the financial management of the bank.
The Registrar of Co-operative Society’s final report dated August 8, 2025, indicated misappropriation of funds worth ₹50 crore, creation of forged documents, and sanctioning of loans beyond permissible limits, leading to the bank’s failure to honour its liabilities.
The ED noted that 380 criminal cases have been registered in connection with the scam, with 368 transferred to the State Crime Branch for further investigation.
During the raids, the agency recovered a large number of manual records, fake fixed deposit certificates, and digital data for forensic analysis.
“At the premises of a former Secretary/Director, 15 original Fixed Deposit Receipts valued at approximately ₹50 lakh and property documents were seized,” the ED said.
The searches also covered the premises of the former President of the bank and a borrower who had availed loans worth ₹7.2 crore, where property and loan documents were recovered. The agency confirmed that the seized materials are being examined to trace the money trail and identify beneficiaries of the alleged diversion of public funds.
“The seized documents and materials collected are being analysed to establish the money trail, financial links and the ultimate beneficiaries of the alleged misappropriation of public funds,” the ED said, adding that further investigation is in progress.
