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Kerala: Banks gave benami loans on Moideen’s direction, says ED
The ED charges against Moideen come three days after the federal agency searched the residence of the MLA in Wadakkanchery and the premises of those linked to him
Author: HT
Published: August 25, 2023
The Enforcement Directorate (ED), probing money laundering charges at the Communist Party of India (Marxist)-controlled Karuvannur Service Co-operative Bank in Kerala, on Thursday said that many benami loans were disbursed in cash to non-members on the instructions of CPI (M) MLA and former minister AC Moideen.
The ED charges against Moideen come three days after the federal agency searched the residence of the MLA in Wadakkanchery and the premises of those linked to him across the state as part of its probe.
“ED investigation has revealed that on the instructions of certain people, 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 the agent in cash to non-member benamis by mortgaging properties of poor members without their knowledge and laundered to the benefit of the accused,” the agency said in a statement.
“Investigation revealed that many such benami loans were disbursed on the instructions of AC Moideen, present MLA and former minister of local self-government. Accordingly, searches were conducted on Kiran PP, Rahim CM, Shiju MK, AC Moideen, and Sathishkumar P,” the statement added.
The ED also confirmed that bank deposits worth ₹28 lakh belonging to Moideen and his wife were frozen as part of the searches. Searches have also led to the seizure of 36 properties valued at ₹15 crore being proceeds of crime.
The alleged siphoning of funds to the tune of ₹150 crore from the bank at the behest of certain CPI (M) district leaders and bank officials first came to light in 2021. As a result, at least 16 FIRs were filed across different stations in Thrissur district by the police and the case was later handed over to the Crime Branch. The ED investigation under the provisions of the Prevention of Money Laundering Act (PMLA) was initiated on the basis of the police FIRs.
Meanwhile, Moideen claimed that he has nothing to do with the alleged fraud. “The ED officials came and searched my house. But their allegations are baseless. I have nothing to do with it,” he said.
On Wednesday, the CPI (M) state secretariat said that the ED searches at the residence of Moideen are a continuation of the attempts of the BJP-led Centre to weaken opposition forces by misusing central agencies.
“In the backdrop of the Puthuppally bypoll, fabricated stories are being created to target CPI (M) leaders and their family members. Right-wing media organisations are competing to make such attempts. The UDF in Kerala is supporting the attacks of the central government in Kerala,” the party said.