Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Hindu
The Hindu
National
The Hindu Bureau

ED questions CPI(M) leader M.K. Kannan in connection with Karuvannur bank scam

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.

The questioning of the CPI(M) leaders in the case and financial losses to the depositors had put the party on the back foot. With allegations of financial frauds being raised against different cooperative banks in the State, Chief Minister Pinarayi Vijayan said on Sunday that the deposits in the cooperative banks would be safe.

In an attempt to consolidate its defence following ED investigations into the functioning of more party-controlled cooperative banks and summoning of more top leaders of the party, CPI(M) State general secretary M.V. Govindan had alleged that the agency was resorting to coercion, torture and threats. Mr. Govindan also alleged that the ED had threatened a CPI(M) councillor to name two top-rung leaders of the party in the scam.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.