CPI(M)-controlled Kerala coop bank gave benami loans, got money back as donations: ED

New Delhi, Jan 21 (PTI) Benami loans were disbursed by the Kerala-based Karuvannur Service Cooperative Bank on the "instructions" of CPI(M) district committee members and in turn, the party received "donations" from such beneficiaries, the Enforcement Directorate (ED) alleged on Tuesday.

The federal agency made the claim in a press statement as it attached fresh assets worth Rs 10.98 crore in connection with an ongoing money-laundering investigation.

There was no immediate response from the Communist Party of India (Marxist). The ruling party in Kerala had earlier rejected the ED's charges made in the case, saying it would legally and politically fight the allegations.

The attached assets include 24 immovable properties consisting of land and buildings in Kerala and bank deposits worth Rs 50.53 lakh, the agency said.

The money-laundering case stems from at least 16 FIRs registered by the Kerala Police's Crime Branch at Thrissur in July, 2021 on charges of alleged irregularities in the bank involving funds worth Rs 150 crore.

"The disbursement of benami loans were done as per the instructions of CPI(M) district committee members who controlled the Karuvannur Service Co-operative Bank Limited's governing body.

"In return, CPI(M) received funds from the beneficiaries as donations through the governing body," the ED alleged.

The agency claimed that its probe found that "bogus" loans were sanctioned by the bank on the "same property multiples times", without the knowledge of the members of the society.

Benami loans were sanctioned to non-members against "inflated" property valuations in the names of members and such loan funds were "siphoned off" and "laundered" by the accused beneficiaries, it alleged.

It was found that loan amounts were "disbursed in cash" and "huge" cash deposits were found in the bank's books of account, according to the ED.

The agency had conducted raids in connection with the case in August-September 2023, arrested four people and attached assets worth Rs 117 crore. PTI NES RC