Former Minister and CPM state committee member AC Moideen appeared before the enforcement directorate (ED) around 9.30 am for interrogation in the Karuvannur bank scam. The Kunnamkulam MLA had kept away from questioning twice, citing personal reasons.

Moideen appeared at the Kochi ED office without attending the Kerala assembly sessions in Thiruvananthapuram.

ED has arrested two persons P. Satheesh Kumar and P. Kiran in the case.

Moideen was asked to appear before them following a raid at his Trissur residence last month.

The ED said that it has found out that Rs 150 crore was siphoned off from Karuvannur Service Cooperative Bank Ltd in Trissur.

The ED investigation has revealed that on the instruction of certain persons, who were district-level leaders and committee members of a "certain" political party and held top positions, loans were disbursed by the Bank Manager through the agent in cash to "non-member benamis" by mortgaging properties of not so well-off individuals without their knowledge.

It has come to light that many 'benami loans' were disbursed on the instructions of Moideen.

(with IANS inputs)