The Directorate of Enforcement (ED), Kochi Zonal Office, has released properties seized in connection with a case registered under the Prevention of Money Laundering Act (PMLA) against N. Bhasurangan, the then president and other officials of the Kandala Service Cooperative Bank, Maranalloor, Thiruvananthapuram, to the bank on Thursday.

This was after the investigation agency had initiated restoration/restitution of the properties in keeping with an order of the Kerala High Court. The agency is taking proactive steps to identify the balance proceeds of crime involved in this case, a release issued here said.

Multiple FIRs

The Directorate of Enforcement had initiated investigation based on multiple FIRs registered against the bank officials under IPC Section 420 (cheating and dishonestly inducing delivery of property) for allegedly deceiving depositors by promising higher returns and then failing to return the deposited amounts. Investigation under the PMLA, 2002 revealed that Mr. Bhasurangan and his associates had made unlawful gain with a corresponding loss to the Kandala Service Cooperative Bank by indulging in several irregularities in the management of the bank by spending ineligible amount towards the appointment of staff and their salary and promotions, construction, sanctioning loans, purchase of vehicles etc.

The agency had seized electronic items, movable properties such as gold and vehicle, and incriminating records during raids conducted on the premises of the bank and the residences of key individuals on November 8 and 9, 2023. Subsequently, Mr. Bhasurangan and his son, Akhiljith J. B., were arrested on November 21, 2023 followed by attachment of movable and immovable properties, said the release. Prosecution complaint was also filed against Mr. Bhasurangan and others on January 19, 2024.