ED probe reveals benami loans disbursed on Kerala CPI(M) MLA's instructions

KOCHI: The Enforcement Directorate on Thursday said that many benami loans were disbursed on the instructions of A.C, Moideen, sitting CPI(M) MLA and former Minister for Local Self Government in Kerala.

The ED in its release issued here on Thursday said they conducted search operations under PMLA, 2002 on 22/08/2023 at five locations across the State of Kerala as part of investigation against benamis and beneficiaries who siphoned off bank funds of more than Rs 150 crore from Karuvannur Service Cooperative Bank Ltd in Trissur.

It further stated that they initiated investigation on the basis of FIRs registered by the Kerala Police alleging swindling of public money by the accused and sanctioning of more than one loan to the same person against the Bank Loan limit, on pledge of the same property.

ED investigation has revealed that on the instruction of certain persons, 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 accused.

“Investigation revealed that many such benami loans were disbursed on the instructions of A C Moideen, present MLA and former Minister for Local Self Government. Accordingly, searches were conducted on Kiran P.P., Rahim C.M., Shiju M.K., A.C. Moideen and Satheeshkumar P.,” read the ED release.

During the search operations, two orders were issued, freezing bank deposits and FDs worth Rs 28 lakh found to be in the possession of A.C. Moideen and his wife.

Searches have also led to seizure of 36 properties valued at Rs 15 crore being the proceeds of crime.

Earlier, a provisional attachment order was issued attaching properties of A.K. Bijoy valued at Rs 30 crore.

Further investigation is under progress.

Incidentally Moideen was caught unawares when a dozen ED officials reached his house in Trissur district on Tuesday morning and left after 22 hours in the early hours of Wednesday, and this left Moideen and the top brass of the CPI(M) jittery.

Local former Congress legislator Anil Akkara, who has been for a while attacking the local CPI(M) leadership for their style of operation, said that "for long the CPI(M) was portraying Moideen as a clean person, while it was not the case and now things are unfolding and it is just not the scam in the Cooperative Bank, but also in the Life Mission homes."