The open statement of LDF convenor and senior party leader EP Jayarajan over the Karuvannur Cooperative Bank fraud has sent shock waves to the CPM leadership in Kerala. The CPM in Kerala is fuming over the statement, in which he said he did not have facts with  him to say that the ongoing probe by the Enforcement Directorate in the bank scam is politically motivated.

The senior CPM leader also publicly stated there was lapse on the part of the party in identifying the wrongdoings in the bank and setting it right.

In an interview given to a Malayalam TV channel, EP Jayarajan said he did not have facts with him to say that the ongoing probe by the ED in the Karuvannur Cooperative Bank scam is politically motivated.

“It is common knowledge that the ED plays political games, but I do not have facts with me to say that regarding the ongoing ED probe in the Cooperative bank scam,” Jayarajan said in the interview.

When pointed out that the CPM state secretary, MV Govindan, and the Kerala chief minister, Pinarayi Vijayan, have come out against the ED probe in the bank scam, Jayrajan said,  “If so, you have to ask such people.”

He also said the Karuvannur Cooperative Bank issue should have been resolved earlier itself and that the issue was not handled in a right way, which has put the cooperative sector in a tight spot.

It may be noted that at a time when the CPM leadership is repeatedly saying that the ED probe in the bank scam is a politically motivated intervention on the part of the Centre, that the ruling front convenor is saying that he didn’t have materials with him to prove it.

It was with the intention to save its face that the CPM is repeatedly raising the allegation that the ED probe in the bank scam is a politically motivated intervention.

Jayarajan’s open statement that the party went wrong in Karuvannur was a big blow to the CPM state leadership. It went a step further and came up with an indictment targeting senior leaders when it was also said that those who needed to be corrected had not been corrected.

By saying he did not have facts to say that the ongoing ED probe in the cooperative bank scam is politically motivated, he is giving a message that he is not endorsing the views of the top party leadership on the ED probe in the scam.

Although the CPM leadership is not ready to accept Jayarajan’s open statement or didn’t respond to it publicly, it is learned the party is taking further steps to find if it is not an isolated voice.

The ED, probing the Karuvannur Cooperative Bank scam case, has by now arrested three people, including  PR Aravindakshan, a top CPM  local leader in Thrissur.  Senior CPM leader and MLA AC Moideen was questioned by the ED once and despite being served two notices to re-appear, he has ducked it.

Senior CPM leader and Kerala Bank vice-chairman MK Kannan has already appeared twice before the ED.  On Friday, though Kannan  appeared before the ED, the agency said his interrogation stopped as he showed signs of dizziness. However, Kannan said he had no such issues and was asked to go after the questioning got over.

Meanwhile, the top CPM  leadership on  Saturday stepped up its troubleshooting efforts to contain the fallout of the Karuvannur Cooperative Bank scam

It was earlier reported that the government was considering a bailout package for the Karuvannur bank with support from Kerala Bank. However, it soon realized that this was not possible due to the restrictions imposed by the Reserve Bank of India. Now, the government is toying with a new plan.

According to the plan, the cooperative department will be directing primary cooperative societies in the state to invest in the crisis-hit Karuvannur bank. Subsequently, these funds would be utilized to give to  the depositors in the bank who lost their hard-earned money

The realization that the ground would be swept away if it failed to reach out to the depositors who lost their money in Karuvannur Cooperative Bank, which is controlled by the CPM, made the party leadership to step up its efforts to announce some bailout packages immediately.