Kerala CPI(M) MLA A C Moideen to be questioned by ED on Sep 4

The Enforcement Directorate (ED) has issued fresh summons to Kerala CPI(M) MLA A C Moideen for questioning on September 4 in connection with a Rs 150 crore bank fraud linked to the Karuvannur Cooperative Bank. Moideen, who initially couldn't attend on August 31, is expected to face questioning and confront evidence seized during recent raids along with statements of some people apart from recording the MLA's statement under the provisions of the Prevention of Money Laundering Act (PMLA).

The ED has frozen bank and fixed deposits totaling Rs 28 lakh belonging to the ex-Kerala Minister for Cooperation and Industries and his spouse. Additionally, they have seized 36 properties valued at Rs 15 crore, which are considered "proceeds of crime" in this case. Moideen, the current representative of the Kunnamkulam constituency in the Kerala Assembly, publicly stated after the raids that the actions taken against him were premeditated. He also affirmed his willingness to cooperate with any investigative proceedings.

The ED had claimed its probe found that "on the instructions of certain persons, who were district-level leaders and committee members of a certain political party and governed the bank, loans were disbursed by the bank manager through the agent in cash to non-member benamis by mortgaging properties of poor members without their knowledge and laundered to the benefit of the accused".

The ED, in a statement issued on August 23, a day after the raids, alleged that A C Moideen had given instructions resulting in the disbursement of numerous benami loans. Some of the individuals whose premises were searched include Kiran P P, Rahim C M, Shiju M K, and Satheeshkumar P, as confirmed by the ED. This case, involving alleged fraud dating back to 2010 at the Karuvannur Cooperative Bank in Thrissur, sparked a political controversy in Kerala two years ago.

The money laundering case is linked to 16 FIRs filed by the Kerala Police (Crime Branch) in Thrissur. Last year, the ED conducted similar raids at six locations, including a branch of the bank in Irinjalakuda, Thrissur, and seized assets worth Rs 30.70 crore belonging to a bank commission agent named Bijoy A K. Following the Kerala Police's FIR registration in July 2021, an audit by the registrar identified "diversions" exceeding Rs 100 crore, as reported by the ED last year.