KOCHI: The Karuvannur Service Co-operative Bank in Kerala disbursed many benami loans in cash to non-members on the instructions of Communist Party of India (Marxist) or CPI(M) legislator AC Moideen, the Enforcement Directorate (ED) said in a statement on Thursday.
The ED statement comes three days after carrying out searches at the residence of the former minister in Wadakkanchery and those linked to him on Tuesday.
The federal agency is probing the money laundering in connection with the siphoning of about ₹150 crore from the bank at the behest of some CPM district leaders and bank officials. The case first came to light in 2021 and resulted in at least 16 FIRs being filed at different stations in the Thrissur district. The case was later handed over to the Crime Branch.
ED has taken up the probe under the provisions of the Prevention of Money Laundering Act (PMLA) on the basis of the police FIRs.
“ED investigation has revealed that on the instructions of certain persons, who were district level leaders and committee members of a 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 the accused,” the agency said in a statement.
“Investigation revealed that many such benami loans were disbursed on the instructions of AC Moideen, present MLA and former minister of local self-government. Accordingly, searches were conducted on Kiran PP, Rahim CM, Shiju MK, AC Moideen, and Sathishkumar P.”
{{/usCountry}}“Investigation revealed that many such benami loans were disbursed on the instructions of AC Moideen, present MLA and former minister of local self-government. Accordingly, searches were conducted on Kiran PP, Rahim CM, Shiju MK, AC Moideen, and Sathishkumar P.”
{{/usCountry}}ED also said bank deposits worth ₹28 lakh belonging to Moideen and his wife were frozen.
The searches have also led to the seizure of 36 properties valued at ₹15 crore, which ED said, were proceeds of crime.
Moideen has claimed that he has nothing to do with the alleged fraud. “ED officials came and searched my house. But their allegations are baseless. I have nothing to do with it,” he said.
On Wednesday, the CPM state secretariat said that the ED searches at the residence of Moideen were a continuation of the attempts of the BJP-led Centre to weaken opposition forces by misusing central agencies.
“In the backdrop of the Puthuppally bypoll, fabricated stories are being created to target CPM leaders and their family members. Right-wing media organisations are competing to make such attempts. The UDF in Kerala is supporting the attacks of the central government in Kerala,” the party said.