Moideen’s Assets Seized in Karuvannur Bank Fraud; ED to Interrogate on Aug 31

The Enforcement Directorate (ED) has unearthed a significant revelation in the Karuvannur Cooperative Bank fraud case, discovering that a majority of the benami loans, totaling Rs 150 crore, were sanctioned under the direction of former minister and CPM state committee member A C Moideen.

Summonses have been issued to both Moideen and the former bank manager, Biju Kareem, compelling their appearance for questioning on August 31. During Moideen’s tenure as a CPM district committee member, he exercised substantial control over the bank’s operations, leading to suspicions of illegal loan extensions within his inner circle.

The ED’s investigation also delves into the potential “nexus” between Moideen and bank manager Biju. The agency previously conducted raids based on provisions outlined in the Prevention of Money Laundering Act, 2002, at the residences of Moideen and other implicated parties, suggesting potential arrests if charges are levied under the act.

The scam, which involves over Rs 300 crore, centers around the managing body of the Karuvannur Cooperative Bank in the Irinjalakuda region. While the ED focuses on allegations tied to the bank loan fraud, other financial misdeeds such as fund transfers to alternate accounts are also under scrutiny.

While the ED refrains from explicitly naming the CPM, it implicates leaders of a political party that oversaw the bank in the fraudulent activities. This has raised questions about the Crime Branch’s initial actions, which excluded Moideen and benamis from the list of accused individuals.

In addition to freezing a Rs 28 lakh account, the ED has also taken action to freeze 36 assets owned by Moideen, valued at Rs 15 crore. Previously, the agency froze a Rs 30 crore asset belonging to commission agent A K Bijoy, prompting ongoing investigations into potential ownership of any benami assets by Moideen.

The ongoing probe has unveiled a pattern wherein the fraudsters pledged bank members’ assets, often belonging to financially disadvantaged individuals, without their consent. These assets were then used to extend loans to benamis who were not bank members, resulting in significant illicit gains for the accused parties.