Kochi, Oct 14 The Enforcement Directorate (ED), which provisionally attached assets worth Rs 57.75 crore of various individuals under the Prevention of Money Laundering Act (PMLA), 2002 as part of its probe into the Karuvannur Service Co-op Bank fraud case, on Saturday revealed that a CPI(M) committee controlled the distribution of illegal loans.
In its report, the ED attributed the information to the former manager of the bank Biju Karim.
It further added that a special committee of the CPI(M) was the deciding factor when it came to distribution of illegal loans and disbursement to persons without any sufficient collaterals as part of a systematic conspiracy and that's what led to the massive loan scam.
The central agency had initiated investigation on the basis of an FIR registered by Kerala Police under Section 420 of IPC.
Kerala Police (Crime Branch) had registered more than 16 FIRs in Thrissur district in 2021 regarding the fraud in Karuvannur Service Co-Operative Bank.
So far, four individuals -- Sathish Kumar, Kiran P. P, Aravindakshan and C.K. Jils -- have been arrested under the provisions of the PMLA, 2002, who were beneficiaries of the illegally sanctioned loans.
The fresh revelation has left the top brass of the CPI(M) jittery as former State Minister and present party legislator A.C.Moideen is under the ED radar. A raid and one round of questioning already over and he failed to turn up again for questioning twice. Likewise, former party legislator M.K.Kannan has finished two rounds and the probe agency is unhappy with the statements of his assets that was submitted.
Expressing uneasiness was former State Minister and party central committee member A.K.Balan who this morning slammed the ED for their ongoing probe saying the agency has no business to conduct the probe.He also took on the Centre for playing truant using the ED to unsettle the Cooperative sector.
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