The Crime Branch arrested two former directors of the Angamaly Urban Cooperative Society on Wednesday in connection with a Rs96 crore loan scam. Elsey Varghese and P.C. Tomy stand accused of sanctioning hundreds of fraudulent loans using forged documents.
Authorities allege that both Varghese and Tomy were signatories on more than 300 fake loan documents, each valued in crores, siphoning off massive sums from the cooperative society over time. The arrests come after the Kerala High Court denied their anticipatory bail pleas twice.
Elsey Varghese was remanded to the District Jail in Kakkanad, while P.C. Tomy was sent to the Aluva Sub Jail. The investigation points to a well-orchestrated scheme within the cooperative society, raising serious concerns about oversight and governance in such financial institutions.
Officials have hinted at the possibility of more arrests as the probe deepens.
