THIRUVANANTHAPURAM: The Enforcement Directorate (ED) on Friday conducted a search at the Nemom Service Cooperative Bank, where irregularities worth Rs 97 crore were allegedly detected earlier this year. Officials from the ED’s Kochi office took part in the proceedings.

The bank, which was governed by a CPM-led panel, has been at the centre of controversy, and the ED’s intervention has acquired political overtones as it comes just ahead of the local body elections in the state.

The controversy began after the bank failed to repay several depositors, prompting an inquiry by the Cooperative Department. The probe revealed widespread irregularities and mismanagement, resulting in losses amounting to several crores of rupees.

The Crime Branch, which investigated the case, had arrested three individuals, including the bank’s president and secretary. The Cooperative Department’s report indicated that the bank has outstanding dues of about Rs 35 crore, but only half of that amount can likely be recovered through legal means.