In the ongoing investigation into the Rs 343 crore Karuvannur Bank fraud, the Enforcement Directorate (ED) has confiscated assets worth Rs 29.29 crore, including those linked to the Communist Party of India (Marxist) [CPM]. Among the seized assets are properties under the name of CPM district secretary M.M. Varghese, such as land valued at Rs 10 lakh housing a village party office, and Rs 63.62 lakh deposited in eight secret accounts held by CPM area and local committees.
The investigation team has indicated plans to present a list of accused individuals and entities, including the CPM and its district secretary, to the ED Court. The recent confiscation brings the total value of seized assets in the case to Rs 117.78 crore.
In August 2023, the ED froze the bank accounts of AC Moideen, former Thrissur district secretary of CPM and former Cooperative Minister, in connection with the Karuvannur bank scam.
The investigation revealed that fake loans of substantial amounts were disbursed against the same land as collateral. Members of the Karuvannur Cooperative Society were unaware of this fraudulent activity. Non-members received loans under benami arrangements, with all disbursements made in cash to avoid future legal complications.
The ED has alleged that the CPM-led Karuvannur Bank disbursed benami and illegal loans with the permission of the CPM Thrissur district committee and the knowledge of the bank secretary and governing council. The bank manager reportedly provided silent approval, leading to funds flowing into five secret CPM accounts. These accounts received donations from loan recipients and portions of staff salaries. The ED further stated that some of this money was used to purchase land valued at Rs 10 lakhs.
The ED has communicated these findings to the Election Commission, Union Financial Ministry, and Reserve Bank of India, highlighting the severity of the fraudulent activities.
The latest developments in the Karuvannur Bank scam further trouble the CPM and the ruling Left Democratic Front (LDF) it leads, both of which are already grappling with multiple corruption charges. Adding to their woes, the recent parliament election results have been disappointing. Despite claiming robust grassroots support, the LDF managed to secure only one seat. Contrary to their assertions that the BJP would not win a parliament seat in Kerala, the BJP not only won a seat but also saw its vote share increase significantly. In several assembly segments, the BJP secured the highest vote count, and in many others, it achieved the second-largest vote share.
Following the dismal parliament election results, where LDF secured only one seat and the BJP made significant inroads, the district and state committees of the CPM have reportedly blamed the party leadership, particularly Chief Minister Pinarayi Vijayan. Criticism has been directed at Vijayan’s arrogance and his use of derogatory terms against opponents and religious leaders.
Adding to the turmoil, the Communist Party of India (CPI), the second-largest LDF constituent, has voiced its discontent with the CPM leadership. CPI state secretary Binoy Viswom has condemned the news coming from Kannur, a CPM stronghold, citing issues like gold smuggling and underworld activities allegedly protected by the party leadership. Viswom claimed that LDF’s cyber warriors, who are seen as champions of the underworld, have caused ordinary people to believe that the Left has strayed from its goals and ideals.
These criticisms come in the wake of allegations made by Manu Thomas, a former CPM Kannur district committee member who recently left the party. Thomas accused the party of being involved with mafia gangs, locally referred to as “Quotation Teams,” and claimed that a senior leader’s son is the kingpin of these operations.
K.R. Subhash, a documentary filmmaker, has withdrawn his film “Hai Youngsters, Know About Pinarayi” from his social media account, citing a grim outlook for the Communist Party of India (Marxist) (CPM). Subhash alleged that goons in Kannur control the party office and criticized Chief Minister Pinarayi Vijayan for deviating from communist principles and treating the party as his family property. He stated that the party’s current stance discourages questioning its leadership.
Subhash’s actions and statements underscore the growing internal discord and suggest that the CPM is heading towards an inevitable disaster.
