Kochi: The Enforcement Directorate (ED) said two sub-committees of the CPM intervened with the connivance of top party leaders, bypassing the governing body of the Karuvannur Co-operative Bank in Thrissur, causing a liability of Rs 344 crore to the bank.
Benami loans worth Rs 188 crore given on the recommendation of the leaders took the bank's non-performing assets (NPAs) to Rs 344 crore. These loans were given by accepting forged documents and inflated collateral values. These loans did not have the knowledge or permission of the bank's governing body, as stated in the order of the ED deputy director, issued as part of the confiscation of the property.
The digital and paper documents and witness statements found during searches at homes and establishments of former minister A C Moideen, CPM's Wadakkanchery municipality member P R Aravindakshan, the third accused in the case, and P Satheesh Kumar, the first accused and private money lender, are attached with the case file, along with the ED order.
The copies of the statements given by the bank's former secretary T R Sunil Kumar and former manager M K Biju, which said the CPM had political affairs and parliamentary affairs sub-committees to sanction benami loans to many by giving fake membership in the bank, have also been made part of the order. A separate minutes book was kept for the meetings of these committees, which intervened illegally, the ED report said.
