KOCHI: The Enforcement Directorate (ED) on Tuesday began questioning former Nemom Service Cooperative Bank (NSCB) president R Pradeep Kumar and Nedumparambil Credit Syndicate (NCS) owner NM Raju at its Kochi office in connection with alleged large-scale financial irregularities.
The questioning commenced around 11 am, with separate teams of officials are interrogating both of them.
Last year, the central financial watchdog launched a probe into alleged irregularities in NSCB involving transactions estimated at around Rs 100 crore. This cooperative bank is alleged to have links to many CPM leaders. Pradeep Kumar is a former area committee member of Nemom.
The ED has also intensified its investigation into NCS, a private finance firm accused of cheating depositors by mobilising funds on promises of high returns. Earlier this month, the agency registered a case under the Prevention of Money Laundering Act (PMLA), 2002, against the firm.
NCS has been on the radar of multiple agencies, particularly after allegations surfaced that former Sabarimala thantri Kandararu Rajeevaru had deposited nearly Rs 2.5 crore with the firm before it shut down operations.
According to an earlier official statement, ED investigators suspect that a portion of the funds collected from depositors was diverted into immovable properties across the state. Evidence gathered during ED searches at NCS group premises reportedly revealed extensive real estate acquisitions, cash-linked transactions, investments in financial instruments, and gold-loan dealings connected to the accused and their associates.
Many depositors across Kerala are believed to have lost substantial sums in the alleged scams involving both financial institutions.
With Assembly elections approaching in the State, the ED’s action—targeting two financial entities, one allegedly linked to CPM leaders and the other connected to suspected financial irregularities related to the Sabarimala episode—is being closely watched in political circles.