Kochi, April 8 Top Kerala CPI-MP and former state minister K. Radhakrishnan was questioned by the Enforcement Directorate (ED) on Tuesday for over eight hours in the over Rs 300 crores Karuvannur Service Co-operative Bank fraud case.
After the questioning was over, he walked out around 8 p.m. So far, 53 people have been named in the list of accused, many of whom have been in jail and are now out on bail.
Radhakrishnan’s appearance comes at a time when the ED is all set to file its final charge sheet.
One of the main reasons he was asked to appear before the ED was that when the scam surfaced, he was the Thrissur district secretary of the CPI-M.
Among the other top CPI-M leaders who have already been questioned are senior CPI-M legislator and former minister A.C. Moideen, former CPI-M legislator M.K. Kannan and several other Thrissur district CPI-M leaders.
During the session of the recent Lok Sabha session, Radhakrishnan was served notice two times to appear before the ED, but he pointed out that since the Parliament is in session, he will be able to appear.
The ED’s investigation is based on an FIR filed by Kerala Police under Section 420 of the Indian Penal Code (IPC), 1860.
The Crime Branch of Kerala Police has already registered over 16 FIRs in Thrissur District regarding fraud at Karuvannur Service Co-operative Bank Ltd.
According to the ED, loans were illegally sanctioned and disbursed to individuals and their benamis from Karuvannur Service Co-operative Bank Ltd.
The loans were granted through a systematic conspiracy involving the bank’s secretary, committee members, and the bank manager, all of whom were allegedly in collusion since 2010.
The investigation revealed that the Karuvannur bank sanctioned bogus loans on the same properties multiple times, often without the knowledge of the bank’s members.
In addition, loans were disbursed to non-members against inflated property valuations, with the funds subsequently siphoned off and laundered by the accused beneficiaries.
The disbursement of these loans was reportedly done at the behest of CPI (M) District Committee members who controlled the bank's governing body.
ED’s, Kochi Zonal Office, has provisionally attached assets worth Rs 10.98 crore in connection with the ongoing investigation into the Karuvannur Service Co-operative Bank fraud case.
The attached assets include one movable property and 24 immovable properties, comprising land and buildings located in Kerala.
The immovable properties are valued at approximately Rs 10.48 crore, while the movable property, in the form of a cash deposit, is valued at Rs 50.53 lakh.
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