Enforcement Directorate’s fresh revelations have triggered massive political controversy in Kerala. ED has found that black money transaction worth Rs 200 crore had happened at the Karuvannur cooperative bank controlled by CPM. They also found that the bank didn’t follow the mandatory KYC norms.
By using the documents which were used to take loans, money laundering had happened and the money was used to purchase land in various parts of Kerala.
Karuvannur Cooperative Bank Scam: CPM leader A.C Moitheen’s relative involved; allegation raised about party leaders’ Benami dealings
CPM Kerala State Committee Member and former minister A C Moitheen’s relative is involved in the sensational Karuvannur Cooperative Bank Scam, reveal reports. Biju, son of Karim, has been working in the bank for over 15 years as its manager. Reports suggest that the fraudulent loans were taken in the name of a company owned by him, Thekkadi resorts. Some other local leaders of CPM are also included in the company as its board members. There is also an accusation that the transactions were done by the Benami of senior CPM leaders and hence the party’s top brass is trying to protect them.
Allegations of CPM controlled Cooperative bank used for money laundering, ED seeks report
In yet another incident that shows cooperative banks/societies being used by CPM for illegal purposes, the Enforcement Directorate has sought a report on the alleged money laundering at the CPM controlled Karuvannur cooperative bank. Reports suggest that Benami transactions worth crores had happened at the bank. ED’s initial investigation suggests that large-scale loans were given illegally. There is also an allegation about the money duped from the bank being used as CPM’s election fund. According to the latest calculation, the scam at Karuvannur cooperative bank is around Rs 300 crore. The initial estimate of the scam was at Rs 100 crore.
100 crore rupee scam hits CPM controlled cooperative bank in Kerala, BJP files complaint at ED
A 100 crore rupee fraud has been found in a cooperative bank in Kerala controlled by communists. The fraud happened at Karuvannur Service Cooperative bank from 2014 to 2020. The 12 member bank governing committee of CPM members was disbanded after the scam's details came out to the public domain. BJP has lodged complaints with ED and IT departments.
As per the reports, 23 crore rupees was found in an account operated by one Kiran. Even after paying the loan amount, many of the common people who took loans on their property received an eviction notice. When they filed a complaint, they realised that another loan was taken from their property, and the money they were paying was going to the shadow account. About 46 people encountered the same problem.
Cooperative societies and banks form the backbone of CPM in Kerala; hence, many illegal activities happen here. After the Union government announced the decision of creating a news ministry for cooperation, CPM leaders were quick to criticise the Union government due to the fear that any regulation on this sector could challenge the party’s existence.