KOCHI: All those directly involved in the Karuvannur Cooperative Bank fraud and money laundering will be arrested in the second phase of the investigation by the Enforcement Directorate (ED). Those who facilitated the fraud will also be arrested. Moreover, benami properties will also be confiscated.

The ED, which filed the preliminary charge sheet within 60 days of arresting the four accused, has started the second phase of the investigation. There are 55 accused in the first phase. The number of accused may increase in the final charge sheet. While the first phase of the investigation was centred on Karuvannur, the second phase will be centred on Thrissur, Peringandoor and Ayyanthole Cooperative Banks.

There is evidence that the money swindled from Karuvannur was diverted through these banks. ED has concluded that a share of the swindled money was transferred to those who facilitated the fraud through other banks as well. Those who received the share will also be named accused.

Bank records of arrested CPM leaders PR Aravindakshan and P Satheesh Kumar have been obtained from the secretary of Peringandoor Co-operative Bank. ED is hoping that it can find Benami transactions by assessing these records and the documents obtained in the raid.