The Enforcement Directorate (ED) that raided the residence and office of former Minister and Communist Party of India (Marxist) MLA A.C. Moideen in connection with the multi-crore loan scam at Karuvannur Service Cooperative Bank took steps to freeze his two bank accounts on Wednesday. It is reported that these accounts have around ₹30 lakh as deposit.
The ED also issued a directive to freeze the accounts of Anil Seth of Maharashtra, who deals with pledged gold, and Satheesh of Kannur, a money lender. According to reports, the ED may ask Mr. Moideen to appear for questioning soon.
The ED raid on the residence of the former Minister of Cooperation and Industries at Thekkumkara, near Wadakkanchery, from Tuesday morning in connection with the Karuvannur loan scam lasted 22 hours.
Mr. Moideen, who alleged that the raid as part of an agenda, denied any role in the loan scam. He termed the raid on his residence “pre-planned” and said he would cooperate with any investigation.
The search began on Tuesday morning and continued till early Wednesday. The ED sleuths left at 5.15 am.
Addressing mediapersons, Mr. Moideen said the investigators verified his bank account details and that of his family members besides checking other property documents kept at the residence.
“The ED officials searched the entire premises. My bank account details, as well as those of my wife and daughter, were examined. The property documents kept at the house were also examined,” he said.
Mr. Moideen said he was told by the investigators that one person had given a statement that he had intervened in changing the criteria to grant loans irregularly at the Karuvannur Service Cooperative Bank.
“In a normal case, the investigators would ask the respective person about the charge levelled against him. But, nothing like that happened. So, I feel that the raid was a pre-planned move,” he said.
Moideen, 67, is a senior CPI(M) leader and he represents the Kunnamkulam constituency in the Assembly.
The central agency covered about half-a-dozen premises in the State as part of the fresh searches conducted under the provisions of the Prevention of Money Laundering Act (PMLA) on Tuesday, official sources said.
Raids were carried out by the ED in connection with this case in August last year also.
The residence of Mr. Moideen and those linked to him were being searched for gathering details of “benami” assets, they said.
The alleged fraud in the Thrissur-based CPI(M)-controlled bank had triggered a political row in Kerala two years ago.
The ED’s preliminary probe found that “on the instructions of CPI(M) district-level leaders and committee members who governed the bank, loans were allegedly disbursed in cash to non-member benamis by mortgaging properties of poor members without their knowledge and laundered to the benefit of the accused”.
The agency suspects many such “benami” loans were disbursed allegedly on the instructions of Mr. Moideen.
The CPI(M) State secretariat in a statement on Wednesday condemned the raid on the residence and office of Mr. Moideen by the Enforcement Directorate.
(With PTI inputs)
