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The Enforcement Directorate (ED) has named the Communist Party of India (Marxist) [CPI(M)] and several of its senior leaders in the chargesheet filed in the Rs 300 crore Karuvannur Cooperative Bank money laundering case. The chargesheet was submitted before the Prevention of Money Laundering Act (PMLA) Court in Ernakulam on Monday, March 25.
Among the prominent CPI(M) leaders listed are former Thrissur district secretary M.M. Varghese, former Kerala minister A.C. Moideen, and sitting Member of Parliament K. Radhakrishnan. The CPI(M) has been named as the 68th accused, while Radhakrishnan figures as the 70th in a list that includes 83 individuals and entities.
According to the ED, the scam involved embezzlement of nearly Rs 300 crore from the Karuvannur Cooperative Bank through fraudulent means. The methods included the use of forged documents, benami (proxy) loans, and multiple disbursements of loans without proper verification. The agency’s findings suggest that several loans were sanctioned without verifying collateral and, in some cases, even to non-members of the cooperative, resulting in substantial losses to both the bank and its depositors.
The ED alleges that the bank operated under the influence of CPI(M), enabling a vast network of fake loan beneficiaries. A total of Rs 180 crore—allegedly generated through these illegal activities—has already been confiscated from some of the accused.
The agency had earlier interrogated several CPI(M) leaders, including former MP P.K. Biju and party functionary M.K. Kannan. In June 2024, the ED seized land belonging to CPI(M)’s Porathissery office and froze multiple party-linked bank accounts in Thrissur.
Arrests under the PMLA, 2002, have already been made in connection with the case. Those taken into custody include moneylender Satheesh Kumar, Thrissur native PP Kiran, CPI(M) councillor PR Aravindakshan, and bank accountant CK Jils. The ED believes these individuals played key roles in orchestrating the fraudulent loans and siphoning off funds.
This is the first time a political party in Kerala has been named as an accused under the PMLA. However, earlier in May 2024, Delhi Chief Minister and Aam Aadmi Party (AAP) leader Arvind Kejriwal was similarly charged under Section 70 of the PMLA in connection with the Delhi excise policy case, in which both he and the party were named as accused.