Unmasking the Bank Scam: Political Ties and Benami Loans in Kerala

The Enforcement Directorate alleged that the Karuvannur Service Cooperative Bank in Kerala disbursed benami loans under instruction from CPI(M) members. Alleged irregularities involved funds worth Rs 150 crore, with attached assets totaling Rs 10.98 crore. Charges link money-laundering with political donations to CPI(M).

The Enforcement Directorate (ED) has claimed that members of the CPI(M) district committee orchestrated the disbursement of benami loans through Kerala's Karuvannur Service Cooperative Bank. These transactions allegedly benefited the Communist Party with subsequent donations from loan beneficiaries.

In its latest statement, the ED announced the attachment of assets valued at Rs 10.98 crore as part of a prolonged money-laundering probe. This development comes amidst ongoing political dissent, with the ruling CPI(M) in Kerala dismissing the allegations as politically motivated.

The case originated from 16 FIRs filed by the Kerala Police in 2021, citing major financial discrepancies amounting to Rs 150 crore. Investigations revealed fraudulent loan distributions against inflated property valuations, with cash deposits raising suspicions of money laundering.

(With inputs from agencies.)