The move comes in the wake of sustained protests by investor groups who allege large-scale misappropriation of funds and inaction by authorities.
Published Nov 07, 2025 | 4:12 PM ⚊ Updated Nov 07, 2025 | 4:12 PM
Enforcement Directorate.
Synopsis: An ED team from Kochi conducted surprise inspections at the bank on Friday, intensifying scrutiny on cooperative institutions in Kerala amid the run-up to local body elections.
The Enforcement Directorate (ED), on Friday, 7 November, has launched a probe into alleged financial irregularities to the tune of ₹100 crore at the Nemom Service Cooperative Bank, Thiruvananthapuram reportedly linked to leaders of the CPI(M).
An ED team from Kochi conducted surprise inspections at the bank on Friday, intensifying scrutiny on cooperative institutions in Kerala amid the run-up to local body elections.
The move comes in the wake of sustained protests by investor groups who allege large-scale misappropriation of funds and inaction by authorities.
Earlier this year, the Crime Branch’s Economic Offences Wing (EOW) had arrested R. Pradeep Kumar, a CPI(M) Nemom area committee member and former president of the bank, in connection with the case.
According to an inquiry report submitted by the Cooperative Department in May under Section 65 of the State Cooperative Rules, the bank had extended loans worth ₹34.26 crore, but collateral existed for only ₹15.55 crore.
The report also revealed that of the ₹10.73 crore due under the bank’s Monthly Investment Scheme, only ₹4.83 crore remained in its accounts.
The inquiry found that former secretaries of the bank were responsible for substantial losses — S. Balachandran Nair for ₹20.76 crore, A.R. Rajendra Kumar for ₹31.63 crore, and S.S. Sandhya for ₹10.41 crore.
Several other members of the governing body are also alleged to have caused losses amounting to around ₹3 crore each.
Investigators noted that the bank’s financial crisis was triggered by the payment of excessive interest on fixed deposits and the sanctioning of unsecured loans to select individuals.
Many of these loans were allegedly taken in the names of the wives and relatives of former secretaries, and have since become unrecoverable.
The interim report under the Cooperative Act indicated that unaccounted transactions and unrecoverable loans ballooned during 2022–23 alone, with crores still pending under various heads, including interest and deposit schemes.
Following the Cooperative Department’s preliminary findings, the government had ordered further quantification of the total loss under Section 68(1), directing a team of officials to reconcile the irregularities with the bank’s official accounts.
The ED’s intervention has now added a new dimension to the controversy, particularly as the CPI(M)-led administration faces growing criticism over alleged corruption and mismanagement in cooperative institutions across the state.
Investor groups in Nemom continue to demand swift action against those responsible and recovery of their deposits, warning that the prolonged delay in justice has eroded public confidence in Kerala’s cooperative sector.
(Edited by Sumavarsha, with inputs from Dileep V Kumar)
