Net widens as ED grills MD of Kerala government-backed company RUBCO in bank scam

ED’s investigation has revealed that Karuvannur Bank had investments in RUBCO. During a period of crisis at the bank, there were attempts to withdraw these investments from RUBCO unsuccessfully.
The Directorate of Enforcement building. (File | PTI)
The Directorate of Enforcement building. (File | PTI)

KOCHI: The Enforcement Directorate (ED) investigating the money laundering case involving Karuvannur Service Cooperative Bank questioned  RUBCO’s Managing Director, Haridasan Nambiar, on Wednesday. Although ED had also issued a notice to Kerala Cooperative Societies  Registrar, T V Subash, he did not appear for the interrogation.

RUBCO is a Kerala government-backed company known for producing rubber products. Haridasan arrived at the ED office in Kochi for interrogation around 3 p.m., and the questioning continued into the night. 

ED’s investigation has revealed that Karuvannur Bank had investments in RUBCO. During a period of crisis at the bank, there were attempts to withdraw these investments from RUBCO, but these attempts were unsuccessful. Additionally, Karuvannur Bank was responsible for the sales of RUBCO products in Thrissur. ED officials discovered that bank employees involved in fund diversion were also coordinating the sales of RUBCO products in Thrissur. 

On the other hand, Cooperative Societies Registrar T V Subash requested more time to appear before the ED for interrogation. 

He conveyed to ED officials that he had received the notice for interrogation only on Tuesday evening. Furthermore, on Wednesday, ED also interrogated Madhu Ambalapuram, a councillor of Wadakkancherry municipality and a CPM leader,  retired DySP Famous Varghese, Sreejith, the brother of the prime accused Satheeshkumar P, and four employees of Karuvannur Bank. 

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