Karuvannur Bank Scam: ED summons former Minister and CPM leader AC Moideen for questioning on August 31

AC Moideen, who is an MLA, has been asked to appear before the officials at the ED Regional office in Kochi. The sleuths of the ED had conducted a twenty-two-hour search at Moideen's house and frozen his and his wife's bank accounts.

Kochi (Kerala): The Enforcement Directorate (ED) has issued a summon to former Minister and CPM Leader AC Moideen for questioning on August 31 in connection with the Karuvannur Bank scam case.

AC Moideen, who is an MLA, has been asked to appear before the officials at the ED Regional office in Kochi. The sleuths of the ED had conducted a twenty-two-hour search at Moideen's house and frozen his and his wife's bank accounts. After a detailed Interrogation, the ED will decide on whether to add him as an accused in the Karuvannur bank scam case. The ED has already raided five places including AC Moideen's House on August 22 under the provisions of the Money Laundering Prohibition Act.

The probe team found that on the instructions of district-level CPM leaders bank loans were irregularly given to benamis with the help of the bank manager. The ED also alleged that loans for other members were cut short to favour benamis. The ED also alleged that many such 'benami loans' were distributed on the instructions of former Minister and MLA AC Moideen.

It is believed that the scam is of Rs 104 crore. Allegations against 'The Karuvannur Service Co-operative Bank', which has been ruled by the CPM for many years, came to light when 63-year-old Mukundan allegedly died by suicide on July 22, 2021. He took the extreme step after receiving a seizure notice for an ungranted loan from the bank. Mukundan took a loan of Rs 30 lakh from the bank and repaid it. But the bank said that Mukundan has two loans of Rs 30 lakhs and Rs 50 lakhs and that both should be paid immediately. The bank refused his clarifications and didn't extend the due date. Then Mukundan died by suicide.