<p>New Delhi: The Enforcement Directorate Monday said it has attached assets worth more than Rs 4 crore of former Kerala Congress general secretary K K Abraham and a person linked to him in a loan fraud case in a cooperative bank based in the state.</p>.<p>The loan 'fraud' case pertains to the Pulpally Service Cooperative Bank located at Pulpally in Wayanad district.</p>.<p>The agency said in a statement that properties worth a total Rs 4.34 crore have been provisionally attached under the PMLA and they belong to Abraham and Sanjeevan Kollapallil, a private person allegedly linked to him and an accused in the case.</p>.<p>Both have been arrested by the ED and they are in judicial custody at present.</p>.<p>The criminal case filed by the ED under the Prevention of Money Laundering Act (PMLA) stems from an FIR of the Kerala Vigilance and Anti-Corruption Bureau (VACB) against the governing body members and officials of the bank.</p>.<p>The central agency has alleged Abraham was the 'overall in-charge of the bank as president who played a key role in sanctioning various loans by overvaluing the properties to the applicants'.</p>.<p>The ED probe found, the agency said in a statement, that bank officials and its governing body members sanctioned 'enhanced' loans without the consent and knowledge of the loan applicants by 'over-valuing' the properties offered as collateral and the over and above amount of the loans were given to Kollapallil.</p>.<p>The loans were not re-paid by the applicants and thus it caused a total loss of Rs 5.62 crore to the Pulpally Service Cooperative Bank, the agency said.</p>.<p>The proceeds of crime, the ED said, in the form of over-valued loans were deposited in the bank account of Kollappallil, maintained with the cooperative bank and subsequently withdrawn 'in cash and siphoned off'.</p>.<p>'Kollapallil utilised the said proceeds of crime for ginger farming in Karnataka where K K Abraham agreed for profit sharing of 10 per cent without any investment,' the ED claimed.</p>.<p>Unexplained cash deposits in the bank account of Abraham and transfer of funds from the account of Kollappallil into Abraham's bank account have been found, it alleged.</p>.<p>Abraham 'knowingly assisted' Kollappallil in acquiring and using the proceeds of crime and thereby committed the offence of money laundering under the PMLA, the ED said.</p>.<p>Prior to the ED action, Abraham had been arrested by the vigilance wing of the Kerala Police following a cheating complaint filed by an elderly couple. </p>
<p>New Delhi: The Enforcement Directorate Monday said it has attached assets worth more than Rs 4 crore of former Kerala Congress general secretary K K Abraham and a person linked to him in a loan fraud case in a cooperative bank based in the state.</p>.<p>The loan 'fraud' case pertains to the Pulpally Service Cooperative Bank located at Pulpally in Wayanad district.</p>.<p>The agency said in a statement that properties worth a total Rs 4.34 crore have been provisionally attached under the PMLA and they belong to Abraham and Sanjeevan Kollapallil, a private person allegedly linked to him and an accused in the case.</p>.<p>Both have been arrested by the ED and they are in judicial custody at present.</p>.<p>The criminal case filed by the ED under the Prevention of Money Laundering Act (PMLA) stems from an FIR of the Kerala Vigilance and Anti-Corruption Bureau (VACB) against the governing body members and officials of the bank.</p>.<p>The central agency has alleged Abraham was the 'overall in-charge of the bank as president who played a key role in sanctioning various loans by overvaluing the properties to the applicants'.</p>.<p>The ED probe found, the agency said in a statement, that bank officials and its governing body members sanctioned 'enhanced' loans without the consent and knowledge of the loan applicants by 'over-valuing' the properties offered as collateral and the over and above amount of the loans were given to Kollapallil.</p>.<p>The loans were not re-paid by the applicants and thus it caused a total loss of Rs 5.62 crore to the Pulpally Service Cooperative Bank, the agency said.</p>.<p>The proceeds of crime, the ED said, in the form of over-valued loans were deposited in the bank account of Kollappallil, maintained with the cooperative bank and subsequently withdrawn 'in cash and siphoned off'.</p>.<p>'Kollapallil utilised the said proceeds of crime for ginger farming in Karnataka where K K Abraham agreed for profit sharing of 10 per cent without any investment,' the ED claimed.</p>.<p>Unexplained cash deposits in the bank account of Abraham and transfer of funds from the account of Kollappallil into Abraham's bank account have been found, it alleged.</p>.<p>Abraham 'knowingly assisted' Kollappallil in acquiring and using the proceeds of crime and thereby committed the offence of money laundering under the PMLA, the ED said.</p>.<p>Prior to the ED action, Abraham had been arrested by the vigilance wing of the Kerala Police following a cheating complaint filed by an elderly couple. </p>