Karuvannur bank fraud case: CPI(M) MLA A.C. Moideen appears for interrogation at ED office

Thrissur: CPM State Committee Member and MLA A.C. Moideen on Monday (Sep 11) appeared before the Enforcement Directorate in connection with the Karavannur bank fraud case. He was directed to appear at the ED office in Kochi today. Thrissur Corporation Council member and CPM leader Anoop Davis Kada has also appeared before the ED.

Moideen was said to provide 10 years of tax records and bank transaction records. The ED alleged that the individuals  obtained the loan from Karuvannur Bank through fake documents on the recommendation of A.C. Moideen.

The Enforcement Directorate (ED) on August 22 conducted search operations in accordance with PMLA 2022 to investigate benamis and beneficiaris who swindled more than Rs 150 crore in bank funds from Karuvannur Service Cooperative Bank Ltd. The searches and raids were conducted at 5 locations in Kerala. The Kerala Police filed FIRs saying that the accused were embezzling public funds and that more than one loan had been granted to the same person against the bank loan cap while being secured by the same asset. Based on these FIRs, the ED initiated an investigation.

According to a press release by the ED, "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."

The investigation also revealed that several of these Benami loans were disbursed under the direction of Kunnamkulam MLA and CPI(M) leader A.C. Moideen. Two orders were issued during the search operations, freezing bank deposits and FDs totaling Rs. 28 lakhs that were discovered to be in the custody of A.C. Moideen and his wife. Additionally, searches resulted in the confiscation of 36 properties worth a total of Rs. 15 crore that were considered to be criminal proceeds.