Rs 15 crore assets seized; leaders of a party involved, says ED

The scam surfaced after several depositors complained of loans being issued to unknown persons using their mortgage documents.
Image used for representational purpose only. (Express Illustration)
Image used for representational purpose only. (Express Illustration)

KOCHI:  The Enforcement Directorate (ED) investigation into money laundering linked to the Karuvannur Service Co-operative Bank loan scandal has revealed the role of district-level leaders of “a certain political party”. The agency carried out searches at multiple locations, including the house of former minister and CPM MLA A C Moideen, which resulted in the seizure of 36 properties valued at Rs 15 crore.

These have been identified as proceeds of crime. This includes Rs 28 lakh fixed deposits in the name of Moideen and his wife. An ED press release did not name either CPM leaders or the party, which governed the bank. It, however, did reveal the involvement of Moideen.

The scam surfaced after several depositors complained of loans being issued to unknown persons using their mortgage documents. Later, an investigation revealed that Rs 150 crore had been siphoned off illegally.  

‘Benami loans were disbursed on MLA’s fiat’

“The ED investigation has revealed that on the instructions of certain persons who were district-level leaders and committee members of a certain political party and governed the bank, loans were disbursed by the bank manager through agents in cash to non-member benames by mortgaging properties of poor members without their knowledge and laundered to the benefit of accused persons. The investigation revealed that many such bename loans were disbursed on the instruction of Moideen, present MLA and former minister of local self-government,” the presser read.

Based on its investigation, ED raided the house of Moideen and his aides Kiran P P, Rahim C M., Shiju M. K. and Satheesh Kumar P. Early this year, ED attached properties of an accused, A K. Bijoy, valued at Rs 30 crore.

CPM to take out protest march

CPM district secretariat will take out a protest march in town on Friday alleging conspiracy behind the ED raid against MLA A C Moideen in connection with the Karuvannur Service Cooperative Bank scam. Meanwhile, the CPM district committee, in its official statement issued on Thursday, alleged a political conspiracy behind the actions against Moideen. 

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