The Directorate of Enforcement (ED) filed the first chargesheet in the Karuvannur Service Co-operative Bank loan fraud case at the Special Court trying the offences registered under the Prevention of Money Laundering Act (PMLA) on November 1, 2023.
Indications are that the investigation agency has named around 50 persons, including the four who were arrested earlier. The ED had arrested CPI(M) Wadakkanchery municipal councillor P.R. Aravindakshan, private money lender P. Satheeshkumar, C.K. Jilse, an accountant of the bank, and P.P. Kiran of Thrissur under the provisions of the Act.
Bogus loans
The prosecution case is that the accused, in connivance with the bank officials, siphoned off money generated from fake loans from the bank. Investigations revealed that several bogus loans were sanctioned by the bank on the same property multiple times without the knowledge of members of the society. Benami loans were also sanctioned to several 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, it said.
The agency had alleged that the accused had high political connections. They also maintained close ties with several prominent politicians, including CPI(M) leaders, it had alleged.
The ED questioned A.C. Moideen and M.K. Kannan, two prominent CPI(M) leaders from Thrissur, in connection with the case which had set off a political storm in Kerala.
The party had organised protests alleging that the investigation agency was targeting its leaders for political reasons. The details of the chargesheet are yet to be known.
