In a significant development , the Enforcement Directorate , which is probing into the Karuvannur cooperative bank scam, has informed the Election Commission, Reserve Bank of India and the finance ministry about the CPI(M)’s “undisclosed accounts” in many cooperative banks in Thrissur district of Kerala.
The Central probe agency has stated that the CPI-M has five secret accounts in the Karuvannur Cooperative Bank in Kerala’s Thrissur.
The ED alleged that these five bank accounts were opened in the name of CPI-M to purchase land for party office and to collect party fund, levy, etc. It says these accounts were opened violating rules and laws. As per the Cooperative Societies Act, a membership should be taken in the Society to open an account. However, the CPM had not taken membership in the cooperative bank.
“These accounts have been opened without obtaining any membership in the society, violating the Kerala Co-operative Societies Act and the byelaws of the bank,” the ED said.
As per the guidelines issued by the Election Commission of India(ECI) and the Representation of the People Act(RPA), all the accounts of the party and its figures must be disclosed. “But only the figures of the central committee and the state committee are there in the balance sheet of the CPI-M,” the ED said.
The ED, in its letter on January 16, urged the Commission to verify whether CPI-M complied with the guidelines laid down by ECI and Representation of the People Act (RPA) with regard to disclosure of full and true particulars of the financial affairs and collection of donations and utilisation of funds.
It alleged that the bank’s governing body and manager disbursed benami loans, thereby causing Rs 150 crore loss to the bank.
The ED further alleges that in Thrissur district, the CPI-M maintained 25 accounts in the name of 17 area committees with various banks, co-operative societies. It alleged that “on comparison of the above investigations with audited balance sheet as on March 21, 2023, it is noticed that these accounts have not been disclosed in the audited financial statement of CPI-M which is consolidated into CPI-M State and National Committee accounts”.
The ED alleged that on the instructions of CPI-M), district-level leaders and committee members who governed the bank, loans were disbursed by mortgaging properties of poor members without their knowledge and the money was laundered to the benefit of accused.
The ED further states that bogus loans in cash were sanctioned by the co-operative society on the same property multiple times without the knowledge of society members. Benami loans were sanctioned to non-members against inflated property valuations in names of other members and such loan frauds were siphoned off and laundered by the accused beneficiaries.
Earlier in January, the ED informed the Kerala High Court that the irregularities in the multi-crore scam hit Karuvannur Service Cooperative Bank were committed at the behest of the party leaders of the ruling CPI-M in the state.
Meanwhile, CPI-M Kerala secretary M V Govindan has challenged the Enforcement Directorate(ED) to find the party’s alleged “secret accounts” in the Karuvannur cooperative bank.
Responding to the questions of the media regarding the reports on ED’s findings on its secret bank accounts , Govindan said, “Let them find the accounts. We are not afraid of ED.”