New Delhi (Agency): The Enforcement Directorate (ED), a financial investigation agency, has issued a new summons to A C Moideen, a Member of the Legislative Assembly (MLA) from Kerala’s CPI(M) party. He is expected to appear for questioning on September 4, concerning a money laundering case that is linked to an alleged fraud of Rs 150 crore in a bank.
Moideen, who is 67 years old, was initially asked to appear before the investigators on August 31. However, he couldn’t make it, stating that he received the summons late. A new notice has now been issued, requiring him to appear at the ED office in Kochi on the upcoming Monday.
The case revolves around alleged fraudulent activities in the Karuvannur Cooperative Bank, which is controlled by the CPI(M) party. Over the past month, the ED has been questioning people related to the case and conducting raids on various properties.
During his questioning, Moideen is expected to be shown documents and records collected in these raids. He will also have to give a statement under the Prevention of Money Laundering Act (PMLA). The ED has already frozen bank and fixed deposits worth Rs 28 lakh belonging to Moideen, a former Kerala minister for Cooperation and Industries, and his wife. They have also seized 36 properties valued at Rs 15 crore, which are considered “proceeds of crime” in this case.
After the conclusion of the raids, Moideen addressed the media, stating that the actions taken were “pre-planned,” but he would cooperate with any investigation. The ED claimed its probe discovered that loans were being given out in cash to “non-member benamis” (people who hold property for someone else) without the knowledge of poor members, and then “laundered to the benefit of the accused.” The ED said that “many such benami loans were disbursed on the instructions of A C Moideen.”
Some people whose properties were raided were identified as Kiran P P, Rahim C M, Shiju M K, and Satheeshkumar P, according to the ED. This case of alleged fraud, which started in 2010, first led to political tensions in Kerala two years ago.
The money laundering case stems from 16 First Information Reports (FIRs) that were registered by the Kerala Police’s Crime Branch in Thrissur. Last year, the ED carried out similar raids at six locations and attached assets worth Rs 30.70 crore of a commission agent of the bank, named Bijoy A K.
The matter has had ripple effects on the political landscape in Kerala. Following the registration of the FIR in July 2021, the registrar in their audit discovered “diversions” of over Rs 100 crore, according to the ED’s statements last year.
This ongoing investigation and the upcoming questioning of Moideen adds another layer to the complex case, making it a focal point of discussion not only in Kerala but across the country.