Enforcement Directorate Interrogates Kerala CPI-M MP in Karuvannur Cooperative Bank Fraud Investigation
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Synopsis
On April 8, K. Radhakrishnan, prominent CPI-M leader and ex-minister, was interrogated by the ED for over eight hours regarding the Rs 300 crore Karuvannur Service Co-operative Bank fraud. This inquiry is part of a broader investigation into widespread financial misconduct involving numerous accused.
Key Takeaways
- K. Radhakrishnan questioned for over 8 hours.
- Investigation involves 53 accused individuals.
- Fraud amount exceeds Rs 300 crores.
- ED preparing to file final charge sheet.
- Assets worth Rs 10.98 crore provisionally attached.
Kochi, April 8 (NationPress) Prominent Kerala CPI-M leader and former state minister K. Radhakrishnan underwent interrogation by the Enforcement Directorate (ED) on Tuesday, lasting over eight hours, as part of the investigation into the more than Rs 300 crores Karuvannur Service Co-operative Bank fraud case.
Upon completing the questioning, he exited around 8 p.m. To date, a total of 53 individuals have been implicated in the case, many of whom have served time in jail and are now released on bail.
Radhakrishnan's appearance before the ED comes at a critical juncture as the agency prepares to submit its final charge sheet.
One of the primary reasons for his summons was his role as the Thrissur district secretary of the CPI-M at the time the scandal emerged.
Other notable CPI-M figures who have already been interrogated include senior CPI-M legislator and former minister A.C. Moideen, and former CPI-M legislator M.K. Kannan, along with various other leaders from the Thrissur district.
During the latest Lok Sabha session, Radhakrishnan received two notices to appear before the ED, but cited his parliamentary commitments.
The ED's inquiry is predicated on an FIR lodged by the Kerala Police under Section 420 of the Indian Penal Code (IPC), 1860.
The Crime Branch of the Kerala Police has already recorded over 16 FIRs in Thrissur District concerning fraudulent activities at the Karuvannur Service Co-operative Bank Ltd.
As per the ED, loans were unlawfully approved and distributed to individuals and their proxies from Karuvannur Service Co-operative Bank Ltd.
The loan approvals were facilitated through a coordinated conspiracy involving the bank's secretary, committee members, and the bank manager, who allegedly colluded since 2010.
Investigations disclosed that the Karuvannur bank issued fictitious loans against the same collateral multiple times, often without the knowledge of bank members.
Moreover, loans were allocated to non-members based on inflated property valuations, with the proceeds subsequently misappropriated and laundered by the implicated beneficiaries.
This loan disbursement reportedly occurred under the influence of CPI (M) District Committee members who dominated the bank's governing body.
The ED’s Kochi Zonal Office has provisionally seized assets valued at Rs 10.98 crore as part of the ongoing investigation into the Karuvannur Service Co-operative Bank fraud case.
The seized assets encompass one movable asset and 24 immovable properties, including land and buildings situated in Kerala.
The total value of the immovable properties is around Rs 10.48 crore, while the movable asset, represented by a cash deposit, is estimated at Rs 50.53 lakh.
