ED Raids Residences Of Ex-Minister AC Moideen, Close Aides In Karuvannur Bank Scam Case

In August 2021, the Kerala government suspended 16 officers for allegedly failing to spot this alleged bank fraud.

The raids are held at all their residences at Wadakkancherry in Thrissur district on Tuesday.

Source : PTI

The Enforcement Directorate raided the premises of former Minister and CPI(M) MLA AC Moideen and a few others in connection with an alleged fraud of Rs 100 crore in party-controlled Karuvannur cooperative bank since 2010. The ED is raiding over six places linked to the MLA and others in the state under the provisions of Prevention of Money Laundering Act (PMLA) said official sources as per PTI. The raids follow after Kerala Police (crime branch) have also registered 16 FIRs in connection with the case. 

The sources said, Moideen, former Minister of local self-government industries and cooperation, and the persons linked to him are under ED scanner over "benami" assets. The raids are held at all their residences at Wadakkancherry in Thrissur district on Tuesday.

The ED teams are being escorted by central paramilitary force personnel, the report said. 

Moideen who is a senior CPI(M) leader represents Kunnamkulam constituency in the state Assembly. The 67-year-old is under the radar due to a case of alleged fraud, beginning 2010, in the Thrissur-based CPI(M) controlled bank. A year ago, the issue created a political row in Kerala.

The preliminary investigation by ED, as per PTI, revealed 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".

In August last year, ED conducted similar raids at six places, including a branch of the bank in Irinjalakuda, Thrissur, and attached assets worth Rs 30.70 crore of Bijoy A. K., a commission agent for the bank.

The ED had claimed that Bijoy A K illegally sanctioned and disbursed loan to the tune of Rs 26.60 crore in cash without any collateral due to a systematic conspiracy hatched in the year 2010.

In August 2021, the Kerala government suspended 16 officers for allegedly failing to spot this alleged bank fraud.