Karuvannur bank scam: CPM leaders, including former Kerala ministers, appear in court

Thrissur: Senior CPM leaders AC Moideen, K. Radhakrishnan (former ministers) and MK Varghese appeared before the PMLA Court in Kaloor on Saturday in connection with the Karuvannur Cooperative Bank fraud case.

The leaders were named as accused in the Enforcement Directorate's (ED) second chargesheet and appeared before the court as part of the proceedings. 

According to the ED, the alleged irregularities at the Karuvannur Cooperative Bank began in 2012-13 under the bank's governing committee. The agency said a sub-committee was constituted under the supervision of the CPM district committee to oversee the bank's administration.

The ED alleged that the sub-committee facilitated the sanctioning of loans in violation of norms. It further claimed that many of those loans were not repaid, leaving depositors unable to withdraw their money.

Alleged commission used to construct party office

The ED also alleged that a decision was taken in 2017 to construct an office for the Porathissery party committee. Separate accounts were opened at the cooperative bank for the project, according to the agency.

The ED claimed that the commission allegedly collected from beneficiaries of the irregular loans was deposited into those accounts. The funds were subsequently used to purchase land and construct the party office building, it added.

Leaders named in second chargesheet

According to the ED, A. Moideen, who was CPM district secretary at the time, directed that the irregular loans be sanctioned and oversaw the formation of the sub-committee.

The agency alleged that after K Radhakrishnan took over as district secretary, the accounts for the office project were opened and the alleged commission money was routed through them.

It further claimed that during MK Varghese's tenure as district secretary, land was purchased and the office building was constructed using those funds.