KOCHI: Even as the CPM leadership has denied any involvement in the Karuvannur bank scam, the Enforcement Directorate (ED) probing the money-laundering angle stated that the sanctioning of loans was controlled and regulated by the “political sub-committee and parliamentary committee of the CPM”.
In the provisional attachment order brought out against loan defaulters, accused and suspects in the case on Friday, the central agency also claimed that illegal loans were sanctioned on the directive of high-profile CPM leaders.
“During the investigation under the Prevention of Money Laundering Act (PMLA), it is found that other than the board of directors of Karuvannur Service Co-operative Bank, the policy matters and sanctioning of loans were controlled by the political sub-committee and parliamentary committee of CPM, which also maintained separate minutes for the sanction of loans.
This has been stated by Biju M K, the then manager of Karuvannur Bank on August 30, and Sunil Kumar, the secretary of the bank on September 1 during the statement recorded under section 50 of the PMLA, 2002,” said the order brought out by Prashant Kumar, Deputy Director, ED Kochi.
Scamsters found a method to bypass Rs 50L cap on loan limit to a member:
“Further, during the course of the investigation, it is also revealed that illegal loans were sanctioned to various people on the directions of high-profile political leaders of CPM,” ED said in the order.
As of December 31, 2022, Karuvannur bank has 90 loan defaulters, who owe Rs 343 crore to the bank.
The principal loan amount alone is Rs 188 crore and the interest to be collected is Rs 154 crore. The highest defaulter is Biju Bijoy, who owes Rs 85.06 crore to the bank. Kiran P P, who was arrested by ED earlier, owes Rs 48.57 crore, the order said.
According to ED, illegal loans were availed of by people, mostly in cash, which makes tracing the money trail difficult. Similarly, the scamsters found a fraudulent method to bypass the Rs 50 lakh cap on loan that can be availed by a member.
“When a person requires a loan amount of more than Rs 50 lakh, the loans are sanctioned in the name of members of their family, friends and others. Multiple loans were sanctioned by mortgaging the documents of a single property. Overvaluation of properties was also done to avail huge amounts,” stated the report.