KOCHI: The Enforcement Directorate (ED) has conducted a raid at the residence of CPM MLA and former local self-government minister AC Moideen in Thrissur as part of an investigation into alleged money laundering related to the Karuvannur Cooperative bank loan scam.
An ED team from Kochi is conducting the raid at Moideen's residence in Thekkumkara, near Wadakkanchery. The operation commenced at around 7 a.m. and is ongoing.
According to ED sources, several depositors have provided statements to the national agency, claiming that the accused individuals in the case had close ties to Moideen. They have also expressed suspicions that Moideen was fully aware of the scam but did not take any action.
Allegations suggest that those who received loans from the Karuvannur Cooperative Bank without providing any collateral were also closely associated with Moideen.
The ED is investigating whether these loans were sanctioned under Moideen's direction. It is expected that Moideen will be summoned for questioning by the ED in the near future. Currently, Moideen represents the Kunnamkulam constituency as a CPM leader.
The Karuvannur Service Co-Operative Bank scam first came to light in 2021 when it was discovered that fraudulent loans had been approved by the bank using the same properties and without any collateral. These loans were approved without the knowledge of the bank's society members, and the loan amounts were disbursed in cash. An audit of the bank's books revealed that Rs 150 crore had been illegally diverted.
In addition to the ED, the Crime Branch is investigating 16 cases related to the scam. Congress leaders have called for a CBI probe into the matter.