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Indian Express
27-05-2025
- Politics
- Indian Express
CPM named in money laundering case: Can ED name a political party as accused?
The Enforcement Directorate on Monday (May 27) submitted a chargesheet in a special court in Kochi in connection with the 2021 Karuvannur Cooperative Bank money laundering case, naming the ruling CPI(M) as an accused. Here is a look at why and how the ED made the political party an accused in the case. The ED has listed the CPI(M), or CPM, as the 68th among a list of 83 accused. Among the 83, eight are CPI(M) functionaries, existing or former. Three senior leaders, K Radhakrishnan MP, former minister A C Moitheen, and senior leader M M Varghese, have been accused as persons who had served as district secretary of the party from 2011 to 2021. The CPM is a political party registered under Section 29A of The Representation of the People Act, 1951. Under this section, only an association or body of individuals can apply to register as a political party. The ED has made CPM an accused in the money laundering case under section 70 of the Prevention of Money Laundering Act, which deals with offences by companies. According to the section, a 'company' means any corporate body and includes a firm or other association of individuals. The ED argued that as the CPM is identified as an association of individuals under the Representation of the People Act, it falls within the definition of 'company' under the PMLA. The Karuvannur Co-operative Bank money laundering case was initially investigated by the state Crime Branch, which said an estimated Rs 300 crore had been siphoned off from the bank. Later, the ED initiated a probe under the PMLA. The ED alleged that the three leaders — Radhakrishnan, Moitheen and Varghese — during their stints as the district secretary of the CPI(M) had helped people get illegal loans, of which a certain amount was channelised to the party fund. According to the chargesheet, a bank employee named Biju M K, who was made an approver in the case, had confessed before a magistrate court that the CPI(M) district committee members put pressure on the bank authorities to grant illegal loans. The party had maintained five illegal accounts with the Karuvannur bank and proceeds of crime were parked in these accounts, the ED claimed. Is it common for political parties as a whole to be accused? This is only the second instance where the ED has named a political party as an accused under the PMLA. Last year, it had named the AAP as an accused in the alleged liquor scam case.
Scroll.in
27-05-2025
- Politics
- Scroll.in
ED names Kerala CPI(M) in chargesheet about alleged cooperative bank fraud
The Enforcement Directorate on Monday named the Communist Party of India (Marxist) in a chargesheet pertaining to a case about money having been allegedly siphoned off from a bank controlled by the party, The Indian Express reported. The agency also named eight leaders of the Communist Party of India (Marxist) in Kerala in the chargesheet. They included Lok Sabha MP K Radhakrishnan, former state minister AC Moitheen and the party's former Thrissur district secretary MM Varghese. This was the second case in which the Enforcement Directorate named a political party as an accused entity under the Prevention of Money Laundering Act. In May last year, the agency had named the Aam Aadmi Party as an accused in the alleged Delhi liquor policy scam. In Kerala, the Enforcement Directorate began investigating the case against Communist Party of India (Marxist) leaders after the Crime Branch alleged that about Rs 300 crore had been siphoned off by party functionaries from the Karuvannur Cooperative Bank, The Indian Express reported. The Enforcement Directorate alleged that Radhakrishnan, Moitheen and Varghese – during their tenures as the district secretaries of the party in Thrissur – helped other accused persons procure illegal loans from the bank. A portion of these loans was allegedly funnelled to the party fund, according to The Indian Express. The chargesheet included the statement of a bank employee named Biju MK, who became an approver in the case. Biju reportedly told a magistrate court that members of the Communist Party of India (Marxist)'s district committee pressured bank authorities to clear illegal loans, and obtained a portion of the loans from borrowers as contributions to the party fund. Communist Party of India (Marxist) state secretary MV Govindan alleged that the Enforcement Directorate's actions were part of a politically motivated conspiracy, The New Indian Express reported. 'The people of Kerala can see through these plots,' Govindan said. 'The CPM will confront the issue both politically and legally.' The Communist Party of India (Marxist) leader referred to a statement by the Union Ministry of Finance before Parliament in March that there had only been two convictions out of the 193 cases registered by the Enforcement Directorate against MPs, MLAs and local body members in the last 10 years. 'This clearly exposes a politically biased approach intended to harass opposition leaders without evidence,' Govindan was quoted as saying by The New Indian Express. He claimed that the party had taken strict action against those allegedly involved in the bank fraud case.
Hindustan Times
27-05-2025
- Politics
- Hindustan Times
ED names CPI(M) in Karuvannur bank fraud case
The Enforcement Directorate named the ruling CPI(M) in Kerala and some of its top leaders including a sitting MP and MLA as accused in a fresh chargesheet in the Karuvannur Service Cooperative Bank 'fraud' case on Monday, officials aware of the matter said. In its second set of final prosecution complaints before a Prevention of Money Laundering Act (PMLA) court in Kochi, the ED named former minister and current Alathur MP K Radhakrishnan, Kunnamkulam MLA AC Moideen and MM Varghese. All three of them were district secretaries of the party in Thrissur in different periods. This final complaint named 28 more people, taking the total number of those arraigned to 83. The money laundering probe stems from at least 16 FIRs registered by the Kerala police crime branch at Thrissur in July 2021 on charges of alleged financial irregularities in the CPI(M) controlled bank worth ₹150 crore. The ED started investigating after complaints of illegal sanctioning of loans to non-members of the bank in cash without sufficient collaterals and mortgaging properties of borrowers without their knowledge purportedly at the behest of the CPI(M) district leadership in Thrissur. The loans were reportedly issued in violation of existing cooperative banking rules and regulations. The directorate's complaint on Monday stated that the CPI(M) was listed as accused since 'the disbursement of the fraudulent loans were made by the bank officials on directions of the district leadership of the party as per the information provided by the secretary and the then manager'. 'The party has committed crimes such as interfering in the functioning of the Karuvannur bank, assisting the accused in fraudulently obtaining loans and thereby cheating the bank, knowingly sharing the money acquired through fraud, possessing that money with the intention of using it in the future while misrepresenting it as untainted and using that money to purchase assets,' the complaint said. 'From the investigations and evidences gathered, it is clearly established that the accused persons committed the offence of money laundering as defined under section 3 of PMLA and they are liable to be prosecuted and punished under section 4 of PMLA and the attached properties involved in the money laundering are liable to be confiscated in terms of section 8(5) of PMLA,' the complaint said. The Kerala CPI(M) termed the ED's charges against the party and its senior leaders as a ploy to 'hunt' them in the backdrop of elections and as 'violating all limits of democratic etiquette'. 'Leaders like K Radhakrishnan, AC Moideen and MM Varghese have been named in the chargesheet as part of a political conspiracy. As district secretaries of the party, they took efforts in exposing the actual accused in the fraud and saving the bank. These leaders stood with the state government, fought against the corrupt, restored the bank's operations and created a system to return money to depositors,' the party state secretariat said. The CPI(M) said the charges against the party leaders were certain to be dismissed in court. The party alleged that the names were added by the agency 'to insult the CPI(M) and protect the interests of the RSS.' 'They better remember that they are playing with fire,' the party added. Radhakrishnan, the Alathur MP, said there was a 'political' decision behind the arraignment of leaders like him. 'These are attempts to destroy the party and the government,' he said.
Time of India
26-05-2025
- Politics
- Time of India
Karuvannur case: Will fight case politically and legally, says CPM
Thiruvananthapuram/Thrissur/Kannur: CPM state secretariat on Monday said enforcement directorate's (ED) move to implicate the party and its leaders in Karuvannur Cooperative Bank fraud case was politically motivated. The party stated it would face the case both politically and legally. "The move to hunt down CPM and party's top leaders in the state is against all democratic decency. CPM central committee member K Radhakrishnan, state committee members A C Moideen and M M Varghese were included in the chargesheet with political motives. As party district secretaries, all three tried to save the bank and expose the financial fraud," said the party in a statement. "The case filed against them won't stand before the law. Yet, they were included in the chargesheet to keep RSS in good humour," it added. The secretariat said state vigilance department found that ED officials were collecting large sums of money as bribes to settle cases. The agency hurriedly submitted the chargesheet to hide its embarrassment over the state agencies booking ED officials caught red-handed for corruption, the statement said. CPM state secretary MV Govindan, speaking to the media in Kannur, reiterated party's stand. ED is functioning as a tool to target opposition leaders and to protect those who associate with the ruling party at the Centre, he said. "The agency frames false cases on opposition leaders and demands bribes worth crores. They (ED) helped the accused in the Kodakara money laundering case. As many as 193 cases were registered by ED in last 10 years. But, the accused were convicted only in two cases," he said. He added that CPM didn't support anyone found guilty in the Karuvannur case. In a statement CPM Thrissur district secretary K V Abdul Khader said the names of reputed CPM leaders were included in the chargesheet as part of hunting opposition leaders being carried out by ED across the country, at Centre's behest. CPM former Thrissur district secretary A C Moideen, MLA, who is one of the accused in the case, said his party didn't have any role in the scam. CPI Thrissur district secretary K K Valsaraj also defended CPM leaders in the case and said the chargesheet submitted by ED was politically motivated. CPM-BJP deal, says Congress Meanwhile, Congress described it as part of a deal between CPM and BJP. Former opposition leader Ramesh Chennithala asked why CPM leaders weren't arrested so far, though ED chargesheet stated that they siphoned off Rs 180 crore from the money deposited in Karuvannur bank. "It is a BJP-CPM deal which is blocking the arrest of CPM leaders in such a massive scam. Even political novices in Kerala know that CPM leaders ensured the victory of BJP nominee in Thrissur Lok Sabha seat in last elections, to avoid their (CPM leaders') arrest in Karuvannur scam. ED generally frames cases for political objectives, and the agency is now detecting corruption cases related to CPM in Kerala to blackmail that party," Chennithala said in a statement. Congress former MLA Anil Akkara and DCC president Joseph Tajet alleged that the ED chargesheet was an attempt to provide an escape route to CPM leaders from the punishment they deserve. However, BJP welcomed the chargesheet and said it was the culmination of party's continuous efforts under the leadership of Union minister Suresh Gopi. BJP Thrissur City district president Justin Jacob alleged that CPM had usurped Rs 400 crore from Karuvannur Cooperative Bank, and said his party had been making consistent efforts to get justice for the depositors, who lost money.
Time of India
26-05-2025
- Politics
- Time of India
ED names Kerala CPM units laundering scam accused
NEW DELHI: Enforcement Directorate making Kerala district units of CPM accused in a money laundering case arising from embezzlement ofRs 150 crore from Thrissur-based Karuvannur Cooperative Bank is only the second instance of a political formation being named as an accused in a case. ED has made the CPM units accused in the latest prosecution complaint (chargesheet) filed before a special court. The other accused include senior party netas from the state, including Lok Sabha MP K Radhakrishnan, who was interrogated last month. CPM has become the second party (or its district unit) to be made an accused after AAP. AAP was made an accused after its senior neta Manish Sisodia, while seeking Supreme Court relief, argued that since his party, that was alleged to have received bribes, had not been made an accused, he could not be booked under PMLA. In both the cases, ED has treated the parties (AAP and CPM) like a company defined under section 70 of PMLA and booked them for laundering money or receiving bribes. According to officials aware of the investigation, rather than the central unit of CPM, it is the local district units that have been named in the chargesheet, as they, through their secretaries, opened accounts to receive funds from the "proceeds of crime". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo ED in its investigation report said the CPM units in question maintained at least 25 undisclosed accounts with several cooperative societies in the name of area committees, with a total balance of Rs 1.7 crore and fixed deposits of Rs 64 lakh, as of Nov 30, 2023. Many of these bank accounts were not disclosed by the party. "On perusal of the balance sheet, it was noticed that the 25 bank accounts of 17 area committees of CPM had not been disclosed. The actual deposits in these undisclosed accounts over the past 10 years is projected to be more than Rs 100 crore, since the said figures are only the closing balances as of Nov 30, 2023," a source said. The audited balance sheets of CPM, with partial disclosures, were submitted to ED by then Thrissur district committee secretary MM Varghese during his questioning. "Undisclosed accounts have been opened by local committee secretaries in the name of CPM Porathissery North local committee (a/c no 5578); CPM party building fund (a/c no 9513), CPM Porthissery South local committee (a/c no 8858); CPM area conference souvenir (a/c no 5580) in Karuvannur Service Co-operative bank," ED had earlier stated in an affidavit before the Kerala high court during a related case hearing. ED has found the opening of the party bank accounts in violation of bye-laws of Societies Act as this was done without granting any membership. The sources of deposits in these bank accounts, according to the ED probe, were party levy, party fund, election fund, building fund, collection from beneficiary loanees who were sanctioned illegal loans from the cooperative bank and contributions by nominated board members, who, in turn, collected funds from loanees.
