The ED has informed the Kerala High Court that their investigation into the financial irregularities in Karuvannur Service Cooperative Bank has shown similar irregularities in 12 other cooperative societies in Kerala, according to the New Indian Express reports.
The banks affected by irregularities are Ayyanthole, Thumboor, Nadackal, Mavelikkara, Moonnilavu, Kandala, Perunkavilla, Mylapra, Chathannoor, Konni, and Marayamuttam and BSNL Engineers Cooperative Bank.
The cooperative societies are giving loans to the public without approval from the Registrar of Cooperative Societies.
However, as per the Banking Regulation Act, no cooperative society shall carry out banking business in India unless it is a cooperative bank with a licence issued by RBI.
