Thiruvananthapuram: Even as the probe into the multi-crore Karuvannur Cooperative Bank scam remains in limbo, another CPM-controlled bank has come under the radar of the Enforcement Directorate (ED) for alleged irregularities amounting to ₹100 crore. On Friday, a team of ED officials from Kochi raided the offices of the Nemom Service Cooperative Bank here as part of a money laundering investigation.

Simultaneous searches were also conducted at the residences of the bank’s board members and secretaries at various locations in Thiruvananthapuram, sources said. Over 250 customers have lodged complaints against the bank's employees and board members.

According to ED officials, the probe under the Prevention of Money Laundering Act (PMLA) was launched based on an inquiry by the Kerala Cooperative Department, which had uncovered large-scale financial irregularities. The CPM-controlled bank is currently under administrative control following the findings.

During the preliminary inquiry in May, the Cooperative Department detected loan manipulations worth around ₹100 crore, reported PTI. Loans were allegedly sanctioned to non-members without adequate guarantees.

The Kerala Crime Branch had earlier registered a case based on complaints from depositors and arrested former secretaries of the bank. Former board members are also booked in the case.

According to the Cooperative Department’s inquiry report which submitted in August, the bank incurred huge liabilities after offering higher interest rates on fixed deposits to attract investments and sanctioning loans without proper documentation to select individuals. Of the ₹34.26 crore issued as loans, records exist for only ₹15.55 crore, though repayment for the entire amount remains pending.

Under the monthly deposit scheme, ₹10.73 crore remains uncollected, with documentation available for only ₹4.83 crore.

The ED raids have placed the CPM in a politically sensitive position ahead of the upcoming local body elections. Meanwhile, angry depositors have staged protests in the area demanding accountability and repayment.