ED attaches assets over Rs 57 cr in Karuvannur bank money laundering case

A total of 117 immovable properties located in three southern states, deposits in 92 banks and vehicles worth over Rs 57 crore have been attached in a money laundering probe linked to the Karuvannur Service Cooperative Bank of Kerala, the ED said on Friday.

The Enforcement Directorate issued a provisional order under the Prevention of Money Laundering Act (PMLA) to attach the assets. The total value of these properties is Rs 57.75 crore.

The attached assets include 117 immovable properties consisting of land and buildings in Kerala, Karnataka and Tamil Nadu; movable properties including 11 vehicles, fixed deposits and credit balances in 92 bank accounts of individuals found actively involved in the offence of money laundering, the federal agency said in a statement.

 

The probe found loans were "illegally" sanctioned and disbursed to these persons and their benamis from the Karuvannur Service Cooperative Bank Ltd. in cash without sufficient collateral as part of a systematic conspiracy hatched and perpetuated by the secretary and committee members of the bank in connivance with the then bank manager, it alleged.

"Bogus loans were sanctioned by the bank against the same property multiple times without the knowledge of members of society. Investigation has also revealed that benami loans were sanctioned to non-members against inflated property valuations in the names of other members and such loan funds were siphoned off and laundered by the accused beneficiaries," the ED said.

The agency had conducted raids in this case in Kerala last month, including at the premises of CPI(M) MLA and former cabinet minister A C Moideen.

This case of alleged fraud, beginning in 2010, in the Thrissur-based CPI(M)-controlled bank has triggered a political row in the state.

The money laundering case stems from 16 FIRs registered by the Kerala Police (Crime Branch) in Thrissur.

So far, the ED has arrested four people in this case.