M.K. Kannan, State committee member of the Communist Party of India (Marxist) [CPI(M)], was interrogated by the Directorate of Enforcement (ED) in connection with the alleged financial fraud in the Karuvannur Cooperative bank on Monday.
Mr. Kannan, State Vice-President of the Kerala Bank, is also the president of the Thrissur Service Cooperative Bank. The agency suspects that bogus and fake loans on the lines of the ones issued by the Karuvannur bank was also issued from the bank. Though the bank was not authorised to operate chit funds, indications are that such operations were carried out under the pretext of monthly deposits, sources said.
The ED had earlier arrested two persons in connection with the alleged issuance of bogus loans from the Karuvannur bank. The investigation agency had also questioned former State Minister A.C. Moideen in the case. The agency had alleged that fake loans were issued from the bank on the instructions of Mr. Moideen. He may again be summoned for interrogation, as per indications.
