The bail applications of CPI(M) Wadakkanchery municipal councillor P.R. Aravindakshan and C.K. Jilse, an accountant of the Karuvannur Service Co-operative Bank, were dismissed by the Special Court trying the offences registered under the Prevention of Money Laundering Act on October 27, 2023 (Friday).
The Directorate of Enforcement (ED) had arrested the two earlier in connection with the multi-crore bank fraud case. The reasons for dismissing the bail application will be known when the court uploads the order.
The ED probed the money laundering angle in the case after the Kerala Police registered an FIR in the bank fraud case.
The ED had alleged that loans were illegally sanctioned and disbursed from the bank to several individuals and their benamis without securing sufficient collateral. The fraud was committed by the secretary and committee members of the bank in connivance with the then-bank manager, the agency said.
Bogus loans
It had alleged that bogus loans for huge amounts were sanctioned by the bank in violation of the rules and procedures. Loans were also found released to persons on the same property multiple times without the knowledge of members of the cooperative society.
Investigations also revealed that benami loans were sanctioned to persons who were not members of the bank and that too against inflated property valuations. The loans thus sanctioned were siphoned off and laundered by the accused beneficiaries, the agency had alleged.
The ED had earlier arrested P. Satheesh Kumar, a money lender, and P.P. Kiran of Thrissur in the case.
The arrested were the alleged beneficiaries of the illegally sanctioned loans. Mr. Aravindakshan had close links with Mr. Satheesh Kumar, the key accused in the scam, the agency had alleged.
The ED had also questioned CPI (M) leaders A.C. Moideen and M.K. Kannan a few times in the case.
