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Kerala’s CPM lawmaker AC Moideen summoned by ED on Sept 4 in benami loans case
MLA A.C. Moideen was summoned to appear before ED officials in the benami loans case on Thursday and sought two more weeks, a request that was declined
KOCHI: Communist Party of India (Marxist) legislator AC Moideen has been summoned for questioning by the Enforcement Directorate (ED) in connection with the alleged fraud at the Karuvannur Service Co-operative Bank, people familiar with the matter said. Moideen, a former minister, has been told to appear before ED officials in Kochi on September 4.
The ED notice was sent after the CPM legislator failed to appear for questioning at the ED office on Thursday and sought two weeks to face questioning. He was reportedly told by the central agency to bring his tax records for the last 10 years.
In a statement last week, ED said benami loans were disbursed in cash to non-members of the CPM-controlled co-operative bank in Thrissur district on the instructions of Moideen. These loans were allegedly sanctioned after mortgaging assets of poor members of the bank without their knowledge and the proceeds were laundered to benefit the accused, the agency said.
The alleged siphoning of funds to the tune of ₹150 crore from the bank at the behest of certain CPI (M) district leaders and bank officials first came to light in 2021. As a result, at least 16 FIRs were filed across different stations in Thrissur district by the police and the case was later handed over to the Crime Branch. The ED investigation under the provisions of the Prevention of Money Laundering Act (PMLA) was initiated on the basis of the police FIRs.
The federal agency has also conducted searches at the premises of Moideen in Thrissur and those linked to him and frozen deposits worth ₹28 lakh in the bank accounts belonging to him and his wife.
To be sure, Moideen, who was the minister for local self-government from 2016 to 2021, has denied his involvement in the alleged fraud. The Kerala CPM said the raids were attempts by the BJP-led Centre to misuse central agencies and weaken leaders of opposition parties in the country.
CPM leaders are wary of the impact of Moideen’s questioning by ED on the Puthuppally assembly bypoll scheduled on September 5. In the bypoll necessitated by the demise of veteran Congress leader and MLA Oommen Chandy, CPM’s Jaik C Thomas is up against Chandy Oommen of the Congress and Ligin Lal of the BJP.
