According to an official, Sajeevan Kollapallil has been detained by the Enforcement Directorate (ED) in connection with an ongoing investigation into money laundering allegations involving the Pulpally Service Cooperative Bank.
The accused was presented before the Kozhikode PMLA Special Court, which ordered him held in ED custody till September 30.
Based on a FIR filed by the Vigilance and Anti-Corruption Bureau in Wayanad, Kerala, against the directors and bank employees of the Pulpally Service Cooperative Bank, Wayanad, the ED opened a PMLA investigation.
According to the ED investigation, bank employees and members of its governing body approved enhanced loans without the consent or knowledge of the loan applicants by exaggerating the value of the properties offered as collateral, and the excess amount of the loans was given to a private person by the name of Sajeevan Kollapallil.
The applicants failed to repay the loans, resulting in a total loss to the Pulpally Service Cooperative Bank of Rs. 5.62 crore.
“The profits of crime were credited to Sajeevan Kollappallil’s bank account at Pulpally Service Cooperative Bank, Pulpally, in the form of an inflated loan. Sajeevan Kollappallil has violated Section 3 of the PMLA, 2002, which defines money laundering as siphoning off the profits of crime, and is punished under Section 4, according to the ED.