Karuvannur Bank Scam Case: ED Seizes 36 Properties Valued Rs 15 Cr

The Enforcement Directorate said that many benami loans were disbursed on the instructions of CPI(M) MLA AC Moideen.

ED stated that they began their inquiry based on FIRs filed by the Kerala Police

Source : PTI

The Enforcement Directorate on Thursday said that bank and fixed deposits worth Rs 28 lakh and 36 properties valuing Rs 15 crore were seized after raids across Kerala in connection with a scam at Karuvannur Service Cooperative Bank Ltd. Many benami loans were disbursed on the instructions of CPI(M) MLA AC Moideen, ED said, as reported by IANS.

Taking to X, formerly known as X, ED said, "ED conducted search operations under PMLA, 2002 on 22/08/2023 at 5 locations across the State of Kerala as part of investigation against benamis and beneficiaries who siphoned off bank funds of more than Rs. 150 Crore from Karuvannur Service Cooperative Bank Ltd."

"During the searches, bank deposits and FDs worth Rs. 28 lakhs were frozen, 36  properties valuing Rs. 15 Crore were seized," it said.

ED conducted search operations under PMLA, 2002 on 22/08/2023 at 5 locations across the State of Kerala as part of investigation against benamis and beneficiaries who siphoned off bank funds of more than Rs. 150 Crore from Karuvannur Service Cooperative Bank Ltd.

— ED (@dir_ed) August 24, 2023

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Further, ED stated that they began their inquiry based on FIRs filed by the Kerala Police saying that the accused had swindled public funds and that more than one loan had been approved for the same person against the bank lending limit, all pledging by the same piece of property.

“Investigation revealed that many such benami loans were disbursed on the instructions of A C Moideen, present MLA and former Minister for Local Self Government. Accordingly, searches were conducted on Kiran P.P., Rahim C.M., Shiju M.K., A.C. Moideen and Satheeshkumar .,” read the ED release, said IANS.

Earlier, ED issued provisional attachment order attaching A.K. Bijoy's properties valued at Rs 30 crore. Further probe is now being conducted.

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