The Enforcement Directorate (ED) on Friday issued summons to senior CPI-M leader and former state local self-government minister AC Moideen for interrogation in a money laundering case related to the Karuvanannur Service Co-operative Bank loan scandal.
Moideen was asked by the ED to appear before it at 11 am on August 31 at its Kochi office. The ED notice to the former minister came a day after it seized 36 properties valued at Rs 15 crore, including Rs 28 lakh in fixed deposits in the names of Moideen and his wife.
The ED has also sent a notice to four ‘benamis’ of Moideen in the case, asking them to appear at its Kochi office for questioning on August 31.
The Central investigation agency found that the MLA is behind crores of benami loans borrowed from Karuvannur Bank. It also stated that the benami took the loan by mortgaging the land of the poor without their knowledge.
ED sources said that Moideen instructed the bank manager to release loans to non-members of the bank who possessed mortgage documents. Now, the ED is checking whether these loans were approved illegally to his benamis.
The ED has on Tuesday conducted raids at the houses of Moideen and his four aides – Kiran P P, Rahim C M, Shiju M K, and Satheesh Kumar P. it considers these four aides as Moideen’s benamis. They are also asked to appear at the ED office in Kochi for interrogation.
The Central agency found that Kiran PP received Rs 25 crore through fraud. The bank fraud came to light a few years ago when several borrowers received recovery notices for amounts greater than they had borrowed.
Meanwhile, CPI-M state secretary MV Govindan has come out against the ED raid at the house of AC Moideen in connection with the Karuvannur co-operative bank fraud.
Speaking to media persons here, Govindan said the Karuvannur bank case has already been investigated and completed. “There is a deliberate attempt to spread the word that something has been found in the ED raid at AC Moideen’s residence. The attempt is to use ED to silence Moideen,” Govindan alleged.
“For the Opposition, the ED is right when it reaches Kerala and it is wrong when it moves against them.” he added.