NEW DELHI: Enforcement Directorate (ED) is reportedly gearing up to lock CPM in the Karuvannur Cooperative Bank scam. ED has handed over details of the CPM's 'secret' accounts to the Election Commission. ED has forwarded this information to the Finance Ministry and the RBI. ED found that the account was opened in violation of Co-operative Bank rules.

According to national media reports, ED's investigation reveals the disbursement of money for benami loans through these accounts. ED is probing a Rs 150 crore fraud in the Karuvannur Cooperative Bank. According to the ED report, five bank accounts were opened in the name of the CPM to purchase land for the party office and collect party funds and levies.

ED alleges that in Thrissur district alone, there are 25 accounts in various banks and cooperative banks under the names of 17 area committees. As per the balance sheet as of March 21, 2023, the details of these accounts have not been disclosed. It is alleged that, at the behest of district-level party leaders, loans were sanctioned in the name of the poor without their knowledge, facilitating financial manipulation. ED also pointed out that many such benami loans were sanctioned at the behest of former minister and CPM MLA A C Moitheen.

Not only in Karuvannur but similar irregularities have been found in many cooperative societies in Kerala. Assets worth around Rs 87 crore have been confiscated in connection with the investigation. ED also stated that four people have been arrested. Based on the findings of ED, the Income Tax Department has initiated an investigation. High Court has transferred the petition filed by the Crime Branch against the ED's refusal to provide the original documents seized in connection with the Karuvannur scam.