Loans from Karuvannur Bank were sanctioned by CPM: ED 

KOCHI: ED said that the loans in Karuvannur Co-operative Bank were sanctioned and controlled by CPM's political sub-committee and parliamentary committee. Policy matters were also decided by CPM apart from the bank board of directors. A separate minute book was kept for sanctioning loans, the ED said in its seizure report. Karuvannur Bank's former manager MK Biju and secretary Sunilkumar had agreed to this. Illegal loans were sanctioned to many as directed by top CPM leaders.

Scams were unearthed in an investigation under the Prevention of Money Laundering Act (PMLA) also. Most of the loan amount sanctioned by the board members and officials was transferred in cash. Illegal transactions are punishable. Bank employees and members of the board of directors have given statements regarding the transfer of money. In the raid on August 25, 2022, documents related to the illegal granting of loans were seized at the bank. Depositors' money was illegally diverted to provide loans. The loans were given in violation of the provisions of the Kerala Cooperative Act, 1989. Due to this situation, the investors are not getting their money back.

The condition that the president, vice president and secretary should verify the documents before sanctioning the loans, including whether the applicant has the ability to repay, was also violated. Fraud-related documents and electronic items were recovered during raids at the homes of PP Kiran, CM Rahim, MK Shiju, AC Moideen, P Satish Kumar, S Deepak and KK Sunilkumar.

Aravindakshan did deals worth lakhs

The arrested CPM leader and Wadakkancherry municipal councillor PR Aravindakshan made transactions worth lakhs through three banks. Transactions worth Rs.66,75,900 were made in SBI. 1.02 crores worth of transactions through two accounts in Peringandur Co-operative Bank. P Satish Kumar has deposited Rs 50 lakhs in the name of Aravindakshan.

Seized

Land plots: 118

Bank Accounts: 89

Vehicles: 11

Total Value: Rs 57,82,67,173