ED Searches in ₹50 Crore Nemom Co-operative Bank Scam Under PMLA.

Headnote:

The Enforcement Directorate (ED) conducted search operations at five locations in Thiruvananthapuram as part of a money laundering probe against M/s Nemom Service Co-operative Bank Ltd. and its former management. The searches, initiated under the Prevention of Money Laundering Act (PMLA), 2002, relate to allegations of large-scale misappropriation of public funds, forgery, and illegal loan disbursements amounting to approximately ₹50 crore.

Background:

1. The ED began investigating the case based on 24 FIRs registered by the Kerala Police against Nemom Service Co-operative Bank Ltd. and others.
2. The FIRs alleged that the Managing Committee misused depositor funds, failed to return deposits, and caused massive financial losses to the public.
3. The offences were registered under Section 420 IPC and Section 318(4) of the Bharatiya Nyaya Sanhita, 2023, both of which are Scheduled Offences under the PMLA.
4. Statements recorded under Section 50 of PMLA revealed that depositors were denied withdrawals despite repeated requests, indicating serious financial mismanagement.
5. A report dated 08.08.2025 from the Registrar of Co-operative Societies confirmed misappropriation of ₹50 crore, creation of forged documents, and loans beyond permissible limits, leading to the bank’s failure to meet deposit obligations.
6. So far, 380 criminal cases have been registered in the scam, with 368 cases transferred to the Kerala State Crime Branch for further investigation.

ED’s Findings and Action:

1. ED conducted simultaneous searches at five premises linked to bank officials and associated individuals.
2. At the bank’s premises, a large volume of manual records and fake Fixed Deposit (FD) certificates—used to secure loans from the bank and another financial institution—were seized.
3. Digital data, including hard disk contents related to depositors and default accounts, was retrieved for forensic analysis.
4. From the residence of a former Secretary/Director, 15 original FD receipts worth ₹50 lakh and property documents were seized.
5. At the premises of the former President, pledged documents were examined, and his statement recorded.
6. The borrower allegedly availing loans of ₹7.2 crore had his property and loan security documents seized, and his statement recorded.

Current Status

The seized records and materials are being analysed to trace the money trail, identify financial links, and establish the ultimate beneficiaries of the misappropriated funds.

Further investigation is ongoing.