KOCHI: The Enforcement Directorate, which is investigating the Karuvannur Cooperative Bank fraud, has found that the CPM amassed undisclosed wealth to the tune of Rs 100 crore over the past 10 years in Thrissur district.
Multiple bank accounts were opened for collecting funds and later closed to evade tracking by investigating agencies and the Election Commission, the ED said in a report filed before the High Court in response to a petition seeking CBI probe into the Karuvannur scam.
The source of the deposits were party levies, election fund, commission from beneficiaries of illegal loans from Karuvannur Bank, and contributions by nominated members, who in turn collect commission from borrowers, the report said.
Meanwhile, the High Court on Friday directed the crime branch to start a probe against all persons, including CPM leaders, whose names appear in the Enforcement Case Information Report in connection with the Karuvannur scam.
According to the ED report in High Court, the funds collected were partly utilised for local expenses, party meetings, acquisition of land and buildings for the party, and election-related expenses.
These bank accounts, deposits, and assets—including local party offices—were not declared in the audited financial statements of the CPM at the district, state, or national levels, the ED said.
This also constitutes a violation of the Election Commission’s guidelines on mandatory declaration of accounts by political parties, the report stated. Upon examining the balance sheets of the Thrissur district committee of the CPM as of March 31, 2023, it was found that 25 bank accounts belonging to 17 area committees of the CPM were not disclosed. These accounts held Rs 1.73 crore and fixed deposits amounting to Rs 63.98 lakh.
“Further, the actual amount of deposits in these undisclosed accounts over the past 10 years is projected to exceed Rs 100 crore, as the figures mentioned reflect only the closing balances as of November 30, 2023,” said the report of the Enforcement Directorate, Kochi Zone, filed on April 11.
Further investigation under way: ED
The ED said senior CPM leaders were involved in the transactions and unprecedented money laundering was carried out by them. Sunil Kumar T R, then secretary of the bank, deposed before the ED that membership was granted by providing fake addresses in the loan applications.
He deposed that the loans were granted due to pressure from bank director board members and political leaders, including then CPM Thrissur district secretary A C Moideen, party vetran Palolli Muhammed Kutty, and then Ernakulam district secretary P Rajeeve. He added that a CPM party subcommittee controlled the day-to-day affairs of the bank.
The ED said it is presently in the process of further probe and has summoned various persons, including political leaders connected with offence of money laundering arising out of the Karuvannur scam.
Karuvannur scam
According to the ED, there was deep-rooted conspiracy to embezzle money from the public and make gains for the party as well as its leaders
Multiple bank accounts were opened for collecting funds and later closed to evade tracking by probe agencies and EC
These bank accounts, deposits, and assets were not declared in the audited financial statements of the CPM at the district, state or national levels. This is also a violation of the EC guidelines
ED findings
A R Peethambaran, former Karuvannur local committee secretary, deposed before ED that CPM opened various accounts in the bank for various purposes
The copy of the audited balance sheet, as of March 31, 2023, of the CPM Thrissur district committee submitted by M M Varghese, secretary of CPM, discloses only four bank accounts & 4 fixed deposits
There are big loan sharks like the 14th accused Satheesh Kumar, who have more than 20 illegal agents, who find their prey in the innocent, unfortunate loan defaulters of other nationalised and other banks. The accused trap them by offering to help close those loans
