ED Raids Locations Linked To CPI(M) Legislator AC Moideen In Rs 100-Crore Bank Fraud Proe

The Enforcement Directorate (ED) initiated searches at properties related to former minister and CPI(M) legislator AC Moideen, as well as individuals associated with him. These actions are part of a money laundering investigation connected to an alleged ₹100-crore fraud at the Karuvannur Service Co-operative Bank in Kerala. According to sources, officials from the central agency in Kochi conducted searches at approximately six sites across the state, beginning at 7 am. Paramilitary personnel accompanied the ED officials during the operation.

Moideen, who currently serves as the Member of the Legislative Assembly (MLA) for the Kunnamkulam constituency in Thrissur district, held significant positions within the CPI(M). He was a state committee member and oversaw various portfolios, including local self-government, industries, sports, co-operation, and tourism in the state Cabinet from 2016 to 2021. However, he was unavailable for comment at the time of these developments.

The ED is actively investigating allegations that loans were fraudulently approved by the CPI(M)-controlled cooperative bank and then distributed as cash to non-member entities without proper collateral. The inquiry also seeks to determine whether such unauthorized loans were sanctioned with Moideen's knowledge.

The Enforcement Directorate's investigation falls under the purview of the Prevention of Money Laundering Act (PMLA). This probe was triggered following the Kerala police's Crime Branch registering around 16 first information reports (FIRs) across various police stations in Thrissur district in connection with the case.

In December of the preceding year, the ED disclosed that it had seized assets totaling ₹30.7 crore belonging to Bijoy AK, a commission agent of the Karuvannur bank. The assets included 20 immovable properties, two vehicles, ₹5.48 lakh in cash seized from Bijoy AK's residence, and ₹35.86 lakh from his personal bank accounts and those associated with his firm. The agency stated that a loan of ₹26.6 crore was disbursed to him without requiring collateral due to a "systematic conspiracy" orchestrated by the bank's secretary and committee members.

The Karuvannur bank also faced scrutiny from the Registrar of Co-operative Societies in Thiruvananthapuram. Subsequent to the registration of FIRs in July 2021, an audit conducted by the Registrar revealed diversion of funds exceeding ₹100 crore. The CPI(M) took action against 13 members, including expelling four, including the bank's president, and suspending and demoting others, following the exposure of the fraud in July 2021.