Bank Loan Scam: ED arrests former KPCC general secretary KK Abraham in Co-op Bank loan scam

The Enforcement Directorate (ED) detained KK Abraham, former general secretary of the Kerala Pradesh Congress Committee (KPCC), on Wednesday in connection with a multi-crore loan fraud at the Pulppalli Service Co-operative Bank.

During his time as president of the cooperative bank, he allegedly participated in the scheme.

Abraham had been summoned to the ED’s zonal office in Kozhikode for questioning. According to sources, the ED was unsatisfied with Abraham’s answers for the inflow of money into his different accounts and other financial operations. He appeared in Kozhikode’s Prevention of Money Laundering Act (PMLA) Court and was remanded to ED custody for two days.

The ED has arrested Kollappalli Sajeevan, the alleged middleman in the multi-crore loan fraud. According to reports, the agency obtained information on financial transactions between Sajeevan and Abraham, as well as from numerous bank accounts belonging to the Congress politician and his family.

Abraham has already been questioned by the ED in connection with the scheme. On June 9, a team of officials from the agency’s Kochi unit raided the homes of Sajeevan and Abraham, as well as bank secretary KT Remadevi and loan officer PU Thomas, and collected documents.

The fraud was discovered following the suicide of a farmer, Rajendran Nair (60), on May 30 at Pulppalli. Nair had taken out a loan of Rs. 80,000, but according to bank documents, he guaranteed his land for Rs. 25 lakh. He was said to have constantly complained about bank fraud before committing suicide.

The Vigilance and Anti-Corruption Bureau, as well as the state police, have opened separate investigations into all of the accused in connection with the scam. Police apprehended Abraham and freed him on bail.