Wayanad: The Directorate of Enforcement (ED) on Wednesday arrested KK Abraham, former general secretary of Kerala Pradesh Congress Committee (KPCC), in connection with a multi-crore loan fraud at the Pulppalli Service Co-operative Bank.
The scam allegedly took place with his connivance during his tenure as president of the cooperative bank.
Abraham had been called in for interrogation at the ED's zonal office in Kozhikode. According to reports, the ED found Abraham's explanations on the inflow of funds into his various accounts and other financial transactions unsatisfactory. He was produced at a Prevention of Money Laundering Act (PMLA) Court in Kozhikode and remanded to ED custody for two days.
Kollappalli Sajeevan, the alleged middleman of the multi-crore loan scam, is in the custody of the ED. The agency reportedly gathered information on financial transactions between Sajeevan and Abraham and from various accounts in the bank to the Congress leader and his relative.
The ED had questioned Abraham earlier in connection with the scam. A team of officials from the Kochi unit of the agency had conducted raids at the houses of Sajeevan, Abraham, bank secretary KT Remadevi and loan officer, PU Thomas on June 9 and seized documents.
The fraud came to light after the suicide of the farmer, Rajendran Nair (60) at Pulppalli on May 30.. Nair had availed a loan of Rs 80,000, but the bank records claimed that he pledged his land for Rs 25 lakh. He had reportedly complained about fraud in the bank repeatedly before dying by suicide.
The Vigilance and Anti-Corruption Bureau and the state police have also registered separate cases against all the accused in connection with the fraud. Abraham was arrested by police and released on bail.
