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ED Arrests Former KPCC General Secretary in Pulppalli Co-op Bank Loan Scam

On Wednesday, the Directorate of Enforcement (ED) made a significant arrest, taking KK Abraham, the former general secretary of the Kerala Pradesh Congress Committee (KPCC), into custody. This development is linked to a massive loan fraud investigation involving the Pulppalli Service Co-operative Bank, where the alleged scam transpired during Abraham’s tenure as the bank’s president.

Abraham was summoned to the ED’s zonal office in Kozhikode for questioning. However, his responses concerning the flow of funds into his multiple accounts and other financial transactions left the ED unsatisfied. Consequently, he was presented before a Prevention of Money Laundering Act (PMLA) Court in Kozhikode and remanded to ED custody for a two-day period.

Kollappalli Sajeevan, believed to be the middleman in this multi-crore loan scam, is already in the custody of the ED. The agency has reportedly gathered information on financial transactions between Sajeevan and Abraham, as well as transactions from various accounts within the bank leading to the Congress leader and his relative.

The ED had previously interrogated Abraham in connection with this scam, and on June 9, a team from the Kochi unit of the agency had conducted raids at the residences of Sajeevan, Abraham, bank secretary KT Remadevi, and loan officer PU Thomas, seizing relevant documents.

The roots of this fraud became apparent following the tragic suicide of a farmer, Rajendran Nair, on May 30 in Pulppalli. Nair had taken a loan of Rs 80,000, but the bank’s records claimed that he had pledged his land for a staggering Rs 25 lakh. It was reported that he had repeatedly voiced concerns about fraud within the bank before taking his own life.

In addition to the ED’s actions, the Vigilance and Anti-Corruption Bureau, as well as the state police, have initiated separate cases against all the accused involved in this fraudulent scheme. Abraham himself had been arrested by the police earlier and subsequently released on bail.

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