The Enforcement Directorate on Wednesday, August 23, said that its investigations have revealed that many benami loans from Karuvannur Cooperative Bank were disbursed on the instructions of AC Moideen, present Kerala MLA from CPI(M) and former Minister for Local Self Government. It also said that the Karuvannur bank scam took place based on “the instructions of certain persons,” who included district level leaders and committee members of a “certain political party”.
The central agency had conducted searches in five locations on Tuesday, including at the residence of senior Kerala CPI(M) legislator AC Moideen, in relation to the scam. Moideen was a minister in the first Pinarayi Vijayan government of 2016-21. The fraud detected in the bank was in excess of Rs 200 crore, leaving many depositors in deep distress.
The ED, in a press release, said that the investigation was conducted on the basis of FIRs registered by Kerala Police, alleging swindling of public money by the accused and sanctioning of more than one loan to the same person against the Bank Loan limit, on pledge of the same property. “ED investigation has revealed that on the instructions of certain persons, who were district level leaders and committee members of certain political party and governed the bank, loans were disbursed by the Bank Manager through the agent in cash to non-member benamis by mortgaging properties of poor members without their knowledge and laundered to the benefit of Accused. Investigation revealed that many such benami loans were disbursed on the instructions of AC Moideen, present MLA and former Minister for Local Self Government. Accordingly, searches were conducted on Kiran PP, Rahim CM, Shiju MK, AC Moideen and Satheeshkumar P.”
The central agency said that two orders were issued during the search — following the raids, bank deposits and FDs worth Rs 28 lakhs that was found to be in the possession of MLA Moideen and his wife were frozen.
“Searches have also led to seizure of 36 properties of valuing Rs 15 Crore being proceeds of crime. Earlier, provisional attachment order was issued attaching properties of AK Bijoy valued at Rs.30 Crore. Further investigation is under progress,” the statement read.
