- ED raids premises of MLA A C Moideen, and others in Kerala in Rs 100 Crore cooperative bank “fraud” linked money laundering case.
- The federal agency is covering about half-a-dozen premises in the state as part of the fresh searches being conducted under the provisions of the Prevention of Money Laundering Act (PMLA).
- The residence of Moideen, a former minister of local self-government, industries, and cooperation, at Wadakkancherry in Thrissur district and those linked to him are being searched for evidence of gathering details of “benami” assets.
- The agency said in its official statement that “multiple bogus loans were sanctioned by the bank on the same property without the knowledge of members of society.”
- The agency suspects many such “benami” loans were disbursed, allegedly on the instructions of Moideen.
The Enforcement Directorate raided the premises of former minister and CPI(M) MLA A C Moideen and some others as part of a money laundering investigation linked to an alleged Rs 100 crore fraud in the party-controlled Karuvannur cooperative bank. The federal agency is covering about half-a-dozen premises in the state as part of the fresh searches being conducted under the provisions of the Prevention of Money Laundering Act (PMLA).
The residence of Moideen, a former minister of local self-government, industries, and cooperation, at Wadakkancherry in Thrissur district and those linked to him are being searched for evidence of gathering details of “benami” assets, the sources said. The ED teams are being escorted by central paramilitary force personnel.
The agency said in its official statement that “multiple bogus loans were sanctioned by the bank on the same property without the knowledge of members of society.” The Karuvannur service cooperative bank was also under scrutiny by the Registrar of cooperative societies in Thiruvananthapuram.
After the FIR by Kerala Police was registered in July 2021, the Registrar in their audit found a “diversion” of more than Rs 100 crore, the ED had said. The Kerala government, in August 2021, suspended 16 officials for their alleged lapses in detecting this alleged fraud at the bank.
The case pertains to the ED’s probe that on the instructions of CPI(M) district-level leaders and committee members who governed the bank, loans were allegedly disbursed “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 suspects many such “benami” loans were disbursed, allegedly on the instructions of Moideen.
(With inputs from agencies)
