Karuvannur scam: CPM held Rs 100 crore in 25 clandestine accounts over 10 years, says ED

The ED made the revelation in a counter affidavit filed before the court in response to a plea against provisional attachment.
ED stated that the funds collected through illegal accounts were utilized for party local expenses, party meetings, and the acquisition of land and buildings for the party and election expenses.
ED stated that the funds collected through illegal accounts were utilized for party local expenses, party meetings, and the acquisition of land and buildings for the party and election expenses.PTI

P Ramdas

KOCHI: The Enforcement Directorate (ED) has submitted before the Kerala High Court that the CPM maintained undisclosed bank accounts in the name of its area committees in Thrissur district, having crores in deposits.

Calculating from the reported balance of Rs 1.73 crore and fixed deposits amounting to Rs 63.98 lakh as of March 31, 2023, the enforcement agency estimated that the party accumulated deposits exceeding Rs 100 crore in these clandestine accounts over 10 years. The ED made the revelation in a counter affidavit filed before the court in response to a plea against provisional attachment.

ED stated that the funds collected through illegal accounts were utilized for party local expenses, party meetings, and the acquisition of land and buildings for the party and election expenses. Further, it was revealed that many accounts were opened, utilized for collection of funds and later closed to avoid tracking by investigating agencies or the Election Commission of India. Further, it was prima facie revealed that these accounts, deposits, and assets like party local offices are not declared in the audited financial statements of the CPM at the district, state or national levels. It was also found that the EC guidelines on declaration of accounts by political parties were violated. Hence it has to be concluded that the CPM amassed huge wealth and income which were never disclosed, the Ed stated.

A R Peethambaran, former secretary of Karuvannur local committee, stated before ED that the CPM had opened accounts in the bank for various purposes and it was against the bye-law of the Karuvannur society. Investigation by ED revealed that the CPM maintained 25 undisclosed accounts in the name of area committees with a total balance of Rs 1.73 crore and fixed deposits of Rs 63.98 lakh as of November 30, 2023, with cooperative societies. The copy of the audited balance sheet as of March 31, 2023, of CPM Thrissur district committee submitted by its secretary M M Varghese reflects only four bank accounts and four FDs.

‘CPM maintained 25 undisclosed accounts’

Investigation by ED revealed that the CPM maintained 25 undisclosed accounts in the name of area committees with a total balance of D1.73 crore and fixed deposits of D63.98 lakh as of November 30, 2023. The copy of the audited balance sheet as of March 31, 2023, of the CPM Thrissur district committee submitted by its secretary M M Varghese reflects only four bank accounts and four FDs

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