Karuvannur bank scam: ED engaged in political witchhunt, says CPI(M)

The investigation into the alleged fraud, beginning in 2010, in the Thrissur-based bank stems from 16 FIRs registered by the Kerala Police (crime branch) in Thrissur.

Kochi: Kerala’s ruling CPI(M) on Tuesday slammed the Enforcement Directorate for arresting a local leader of the party in connection with the Karuvannur bank fraud case and accused the central agency of engaging in a “political witch hunt.” Hours after Wadakkanchery Municipal Councillor P R Aravindakshan was arrested by the ED, the CPI(M) said the party would strongly resist the Centre’s move to target its leaders on the matter.

The agency has also arrested a former employee of the Karuvannur cooperative bank, C K Jills, who allegedly syphoned off Rs five crore bank funds.

---

Reacting to the arrest, CPI(M) state secretary M V Govindan alleged that the investigative agency is conducting a politically-motivated investigation.

He said the arrest of Aravindakshan is a political witch hunt by the agency in retaliation for his complaint to the police in which he accused ED officials of threatening and assaulting him.

“The central government is using the ED to take deliberate steps to destroy the cooperative sector in Kerala,” Govindan further alleged.

He said the investments made in the cooperative sector would not be lost, and added that if there were any shortcomings, they would be resolved after taking necessary actions.

“But attacking the CPI (M) and its leaders on this issue will be strongly resisted,” the Left leader added.

Meanwhile, a special sessions court considering Prevention of Money Laundering Act (PMLA) cases remanded Aravindakshan and Jills in judicial custody on Tuesday and said it would consider the custody application by the agency tomorrow.

Talking to reporters after the ED arrest, Aravindakshan alleged that it was a fake case. “I am not a thief or a murderer. This is a fabricated case,” he said, claiming that he was being wrongfully accused.

Arivandakshan’s arrest is the first of a political person in the alleged scam, in which several functionaries of the CPM are under the scanner, officials said earlier.

The investigation into the alleged fraud, beginning in 2010, in the Thrissur-based bank stems from 16 FIRs registered by the Kerala Police (crime branch) in Thrissur.

The ED has said its probe has found that “on the instructions 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 (the money) laundered to the benefit of the accused”.

“Many such benami loans were disbursed on the instructions of A C Moideen,” it had alleged in a statement issued on August 23, a day after it conducted raids.

Moideen, 67, had told the press that the ED action was “pre-planned,” but said he would cooperate in the investigation.

He is a former minister for cooperation and industries and currently represents the Kunnamkulam constituency in the state Assembly.

The ED had first carried out raids in this case in August last year at six locations, including a branch of the bank located in Irinjalakuda, Thrissur. It had attached assets worth Rs 30.70 crore of a commission agent of the bank named Bijoy A K.