ED raids premises of Kerala MLA in ₹100 crore ‘cooperative bank fraud’

The Enforcement Directorate (ED) conducted raids at the residence of Kerala MLA AC Moideen as part of a ₹100 crore cooperative bank “fraud” investigation. The ED is looking into a case involving a substantial fraud in the Karuvannur cooperative bank, which is under the control of the CPI(M) party.

This federal agency is carrying out searches at multiple locations in the state, adhering to the provisions of the Prevention of Money Laundering Act (PMLA). The focus of these searches is to uncover evidence related to the accumulation of “benami” assets. AC Moideen, a former local self-government minister, is among those being investigated, along with individuals connected to him.

The case revolves around the ED’s inquiry into allegations that the bank, governed by CPI(M) district-level leaders and committee members, approved loans “in cash” to individuals not affiliated with the bank. These loans were allegedly sanctioned by using the properties of financially disadvantaged bank members as collateral, all without their knowledge. The funds obtained through this scheme are suspected to have been laundered for the benefit of the accused parties.

The agency suspects that a significant number of these unauthorized loans were granted, likely under the directions of AC Moideen. The investigation delves into the possible role of the former minister and his connections in facilitating this fraudulent activity. The ED’s actions are part of a broader effort to unveil the extent of the scheme and to hold those responsible accountable for their actions.

The Enforcement Directorate’s raids on the premises of Kerala MLA AC Moideen are connected to a substantial cooperative bank fraud case involving around ₹100 crore. The ED’s investigation is centered on allegations of loans being distributed “in cash” to non-members of the bank under the control of the CPI(M), utilizing properties owned by marginalized members as collateral. The focus of the searches is to gather evidence related to “benami” assets and to uncover the extent of the fraudulent scheme, with AC Moideen’s role coming under scrutiny.

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