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The loan was taken from the Ezhamkulam branch of the Kerala Bank.
The bank officials said they could not accept the cheque as the loan had already been closed.
Cooperative banks deal with cash regularly as they distribute social welfare pensions, Kerala State Road Transport Corporation (KSRTC) pension and other government scheme payments.
The manager and officials of Pandalam branch of Kerala Bank had come to initiate proceedings towards attaching the property mortgaged in Thonnalloor at Elassery.
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