The Enforcement Directorate submitted before the court that the CPM leaders’ fraud is only the tip of the iceberg; not only the bank’s directors but also some politicians linked with the bank are involved in it. ED submitted before the court that Aravindakshan had threatened and pressurised the director and the board to approve the fraudulent loans. ED submitted this when the court considered Aravindakshan’s bail application. ED had also pointed out that money has been transferred to the CPM accounts in Karuvannur. Earlier ED found out that CPM had a separate account in the bank.
ED had submitted that Satheeshkumar, another accused, had tried to influence the ministers and other influential people through Aravindakshan to facilitate the fraudulent dealings. ED submitted that fees for the medical college education of Satheeshkumar’s daughter was paid off from Aravindakshan’s account. Satheeshkumar had maintained strong rapport with Aravindakshan. Aravindakshan was aware of all dealings of Satheeshkumar before they became friends.
CPM-controlled Karuvannur Cooperative Bank has been hitting the headlines since long, of course due to its status of the mother of all cooperative bank frauds. ED has already attached Rs 87.75 crore worth assets. Ninety deliberate defaulters reportedly owe Rs 343 crore to the bank. CPM leaders and Wadakkancherry Municipal Councilor P.R. Aravindakshan, money lender P Satheeshkumar, bank accountant C.K. Jilse and P.P. Kiran had been arrested in this connection. CPM state committee member and former Cooperative Minister A.C. Moideen MLA and M.K. Kannan, another CPM State Committee member and Vice President of CPM-controlled Kerala Bank have already been interrogated by ED. ED has seized the assets of Moideen.