Angamaly coop loan scam: key accused’s wife arrested on suspicion of being his benami

The Crime Branch (CB) probing a loan scam running to ₹96 crore at the Angamaly Urban Cooperative Society has arrested the wife of the key accused on suspicion that she served as benami for her late husband’s ill-gotten proceeds.

The arrested was identified as Elsy Paul, wife of the late P.T. Paul during whose term as president of the society director board the alleged loan scam took place. According to CB sources, multiple loans had been taken in her name and crores of rupees had been transacted through her multiple accounts in the society.

“She effectively served as the key accused’s benami as many of his investments, including in land, were made in her name. During his term as president, multiple loans on the same title deeds or even copies of the original land documents were sanctioned to his cronies. Even the director board was packed with his hand-picked cronies,” the sources said.

Another five former director board members, including three whose anticipatory bail pleas are pending before the Kerala High Court, have been arraigned as accused. Two of the accused are outside the country.

So far, the CB has arrested five director board members, a former secretary and a loan manager. Though more staff have been included on the list of accused, they had not served in decision-making positions.

The CB has found that 422 fake loans had been sanctioned against title deeds of properties often without the knowledge of the original title holders. Apart from fake loans, cases are also being registered at the local police station level on petitions by investors complaining of failure to return their investments.

Joint Registrar General, Cooperative department, Francis Thoppil, had issued an order to attach the properties of three persons, including a director board member, for defaulting repayment of loans of ₹25 lakh each. The CB case was registered on a complaint lodged by Mr. Thoppil.