The Enforcement Directorate (ED) will question A.C. Moideen, former Minister and Kunnamkulam MLA, in connection with the multi-crore loan scam at the Karuvannur Service Cooperative Bank.
The ED has issued notice to Mr. Moideen to appear before it for questioning at its Kochi office on August 31. The ED has also issued notice to P.P. Kiran, C.M. Rahim and M.K. Shiju, alleged benamis of the former Minister, to appear before it.
The ED had conducted a 22-hour raid under the Prevention of Money Laundering Act of 2002 at Mr. Moideen’s residence recently. The raid was part of an investigation against benamis and beneficiaries who allegedly siphoned off funds of more than ₹150 crore from Karuvannur Service Cooperative Bank, according to an ED statement.
It is reported that the ED recovered phone records and WhatsApp chats between Mr. Moideen and the Karuvannur bank manager.
According to the ED statement, it initiated the investigation on the basis of FIRs registered by the Kerala Police alleging swindling of public money by the accused and sanctioning of more than one loan to the same person against the bank loan limits on pledge of the same property.
The ED statement said that district leaders and committee members of the political party which governed the bank instructed the manager to disburse loans through agents in cash to non-member benamis by mortgaging properties of some members without their knowledge.
Investigations revealed that many such benami loans were disbursed on the instructions of Mr. Moideen. the ED said. It is reported that the information received during the interrogation of a few accused in the scam also led to the raid at the residence and office of the former Minister.
The ED had issued an order to freeze bank deposits and fixed deposits of Mr. Moideen and his wife to the tune of ₹28 lakh.
