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Kerala: '25 secret accounts for CPM in Karuvannur Bank': ED claims black money transaction of Rs 100 crore

Karuvannur Bank scam: The Enforcement Directorate (ED) revealed that several CPM leaders including Minister P Rajeev pressured the employees to approve loans at the Karuvannur Service Cooperative Bank. The ED also stated that a black money transaction of Rs 100 crore took place in the bank.

Kerala: '25 secret accounts for CPM in Karuvannur Bank': ED claims black money transaction of Rs 100 crore anr
Author
First Published Jan 16, 2024, 9:38 AM IST

Kochi: In a surprising revelation, the Enforcement Directorate (ED) informed the High Court that it received statements indicating that Minister P. Rajeev had applied pressure to fraudulently approve loans at the Karuvannur Service Cooperative Bank. The ED claims to have obtained a statement from Sunil Kumar, the bank's former secretary, alleging that CPM leaders put pressure on them to approve illegal loans, according to an affidavit that was filed with the High Court.

The ED stated that the CPM operated  25 secret accounts in the Karuvannur Bank and a secret black money transaction of Rs 100 crore took place and a huge property was also purchased with this money. The ED has informed the progress of the investigation in the private petition seeking the cancellation of the frozen bank account related to Karuvannur Bank.

Sunil Kumar had also issued statements against CPM leaders A.C. Moideen and Paloli Mohammed Kutty. However, Minister P Rajeev has denied all allegations claiming it to be propaganda ahead of the elections.

According to the ED,  black money transactions, fake loans, gold mortgages and land collateral loans were carried out under the full supervision of the CPM local governing body. Many employees were made to look after the political leaders who committed a huge fraud. The black money transaction was carried out in the names of the Area Conference Souvenir Account and Building Fund. 

Additionally, a separate minute book was maintained to manage CPM accounts. This was how 25 accounts that belonged to 17 area committees were operating. Several accounts were eventually closed to prevent being discovered by the Election Commission and other organisations. A report further claims that there was no audit of the deposits and assets held in the hidden accounts.

A person who was accused in Karuvannur Cooperative Bank filed a petition in the High Court, claiming that the Enforcement Department had frozen their bank account. Following its review of the petition, the court asked ED to provide an explanation, which prompted ED to submit the affidavit on Monday.

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