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At last, the victims of the infamous Rs 343 crore worth of Karuvannur Bank scam see the light at the end of the tunnel, a chance to get their money back, thanks to ‘Modi’s Guarantee’. Enforcement Directorate (ED) has reportedly stated that the properties and the funds they (ED) had seized from the accused in the CPM-controlled Karuvannur Cooperative Bank would be returned to the victims, the defrauders. Reports suggest that ED has seized properties worth Rs 108 crore; they belong to 54 accused.
Mahadevan, one of the depositors, approached a special court in Kochi some time back. A petition was submitted before the court dealing with PMLA (Prevention of Money Laundering Act) to seek the chance to get the funds he had lost due to bank fraud from the assets seized from the accused.
ED had reportedly expressed its willingness to return the monies to the depositors through the affidavit it submitted before the court on April 15 in connection with Mahadevan’s petition. His deposit in Karuvannur Bank was Rs 33,27,500. ED found out that the fraud was implemented by conspiring and forging the documents.
ED’s affidavit reportedly states that the accused had invested the money they had siphoned from the depositors in real estate and other business sectors.
Reports suggest that some clauses come to the rescue of the victims. According to the latest amendment to the PMLA, assets such as properties and investments seized during investigations in cases in connection with fraud can be returned to the victims. The auction procedures will be decided upon by the PMLA court. Here, the Bank also takes the role of the defendant. Therefore, the Bank will be unlikely in a position to write the selling deed in its name on the basis of the Cooperative Law and carry out the auction. The depositors have to get about Rs 300 crore back. ED has reportedly seized assets worth Rs 108 crore. The most reasonable solution is to seek the approval of the High Court after the appointed arbitrator evaluates the value of the assets to prepare the priority order for those who are supposed to get their money back. It can be implemented by carrying out the action process based on the guidelines of the High Court. In the meantime, Rs 7.10 lakhs was obtained by auctioning two vehicles seized by the investigation agency in the Karuvannur fraud case. The bank has to file a petition before the court to get those funds.
People in general and victims in particular believe that things will now move faster since the Prime Minister told the massive public gatherings in Alathoor and Thiruvananthapuram on April 15 that the victims will get the money back and the necessary legal discussions are going on in this connection. There are reports that ED has held a high-level meeting at Kochi on April 15. The affidavit was submitted before the court closed on the heels of this meeting.
There are reports that when the Administrative Committee took over the administration of the Bank after dissolving the Bank Board, Rs 116.04 crore was returned to 10,740 investors. Only 60 per cent of them received their total deposits. Now, the victims praise Prime Minister Narendra Modi for his strong intervention in their favour.
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