The Enforcement Directorate (ED) has filed its final chargesheet in the ₹300 crore scam linked to the CPM-controlled Karuvannoor Cooperative Bank in Thrissur. Among the accused are senior CPM leaders, including K. Radhakrishnan MP, A.C. Moideen MLA and M.M. Varghese. In a sensational and unprecedented development, the CPM itself has been named as an accused in the case — a rare instance of a political party being directly implicated in a money laundering investigation — featuring in the list of 83 accused.
Radhakrishnan, a former Kerala Minister, former Speaker of the State Assembly, and ex-CPM District Secretary in Thrissur, currently serves as the CPM Parliamentary Party leader in the Lok Sabha. He also holds the post of National President of the CPM-affiliated Dalit Shoshan Mukti Morcha.
A.C. Moideen, an MLA and former Minister for Cooperation and Industries, is another key figure named. He was also CPM’s Thrissur District Secretary and remains a State Committee member of the CPM-controlled Kerala Karshaka Sangham. M.M. Varghese too held the influential post of District Secretary in Thrissur.
The chargesheet, submitted before the PMLA (Prevention of Money Laundering Act) Court in Kaloor, Kochi, reveals that a number of individuals allegedly facilitated unauthorised loans. The CPM has been listed as Accused No. 68, with a total of eight party-linked accused, including seven leaders and the party itself. The named individuals are:
A64: Madhu Ambalappuram – Councillor, Vadakkancherry Municipality
A67: A.C. Moideen – Former Minister
A68: CPM (as a political party)
A69: M.M. Varghese – Former CPM Thrissur District Secretary
A70: K. Radhakrishnan – MP, Former Minister and Speaker
A71: A.R. Peetambaran – Local Committee Secretary, Porathusserry North
A72: M.B. Biju – Local Committee Secretary, Porathusserry South
A73: K.C. Prema Rajan – Area Committee Secretary, Irinjalakkuda
An additional list of 27 accused has brought the total number to 83.
The ED chargesheet states that the accused siphoned off ₹180 crore through fraudulent loans. Assets worth ₹128 crore have been seized. Investigations suggest that senior leaders received substantial “gifts” for facilitating and participating in the scam.
ED Assistant Director Nirmalkumar Mocha is leading the investigation. The agency has also decided to hand over details of those not covered under the PMLA to the state police—standard technical protocol after a chargesheet is filed.
Crucially, the ED has found that money laundering operations were run through secret CPM accounts in the Karuvannoor Bank, with the knowledge and involvement of the party’s district leadership. These clandestine accounts were not disclosed in the party’s Income Tax returns, according to the ED report.
The case has dealt a severe blow to the credibility of the CPM. With mounting evidence and diminishing credibility, the party’s defence appears increasingly hollow. The Karuvannoor scam is expected to become a key electoral issue in the upcoming Nilambur Assembly by-election and local body elections in the next few months.
The CPM, as expected, has cried political vendetta, claiming the probe is politically motivated. However, the fraud dates back a decade. Despite multiple warnings from cooperative activists and even grassroot CPM workers, the party leadership allegedly chose to shield the culprits.
It defies belief that such a large-scale scam could have taken place without the full knowledge—or complicity—of top party brass. Reports indicate the fraudulent practices began during A.C. Moideen’s tenure as District Secretary. Notably, the then-branch manager M.V. Suresh reportedly submitted written complaints to Moideen. Instead of action being taken against the wrongdoers, Suresh was ousted—first from the bank, and later, disgracefully, from the party.
