The Enforcement Directorate (ED), which is probing the Karuvannur cooperative bank scam, is likely to issue summons to Kerala Industries Minister P Rajeev to record his statement regarding the allegations against him in the case.
In an affidavit filed before the Kerala High Court on Monday, the ED said Rajeev had pressurised the bank to grant loans illegally when he was the CPI-M Ernakulam district secretary.
The ED’s submission was based on a statement made by Sunil Kumar T R, former secretary of the bank and the prime accused in the case. There are also references to CPI-M leaders A C Moideen MLA and former minister Paloli Mohammed Kutty in the ED’s affidavit. However, Minister P Rajeev dismissed all allegations as propaganda ahead of elections.
There were separate minute books on the meeting containing directions to the governing body for granting illegal loans, which were handed over by Sunil Kumar to the office secretary of the Thrissur CPI-M district committee, the affidavit said.
The ED made the revelation in a counter affidavit filed before the court in response to a plea against provisional attachment order of the ED and to de-freeze the bank account.
The ED said that crores of rupees were disbursed as loans on the mortgage of land without evaluation. Multiple loans were sanctioned on the mortgage of a single property.
The ED also informed the court that the CPI-M maintained undisclosed bank accounts in the name of its area committees in the Thrissur district, having crores in deposits. Calculating from the reported balance of Rs 1.73 crore and fixed deposits amounting to Rs 63.98 lakh as of March 31, 2023, the Central probe agency estimated that the party accumulated deposits exceeding Rs 100 crore in these clandestine accounts over 10 years.
The ED stated that the funds collected through illegal accounts were utilised for party local expenses, party meetings, and the acquisition of land and buildings for the party and election expenses.
S G Kavitkar, assistant director, ED, Kochi, filed the counter affidavit in response to the petition filed by Alisabri, an accused in the case, and others challenging the provisional attachment order of the ED and to de-freeze the bank accounts.