More cooperative banks, CPM leaders under ED lens

THRISSUR: The Rs 200-crore Karuvannur Service Cooperative Bank scandal seems to have caught up with more cooperative societies with the Enforcement Directorate (ED) digging up financial transactions of one of the main accused, Satheeshkumar P, in Ayyanthole Service Cooperative Bank and the Thrissur District Service Cooperative Bank.

The ED, which on Monday raided three document writers and a jewellery shop in Thrissur and a Kochi-based businessman, is also expanding its probe to cover more senior CPM leaders, including M K Kannan, a former MLA and vice-president of the Kerala State Cooperative Bank (Kerala Bank).

In its report to the special Prevention of Money Laundering Act (PMLA) court, in Kochi, while producing Satheeshkumar earlier this month, the ED said it suspects the Kolazhy native to be a benami for many CPM leaders, including A C Moideen MLA. The agency also questioned K A Jijor, from Viyyur, who was an aide of Satheeshkumar.

Raid at Thrissur Service Cooperative
Bank | Express
The raids on the banks in Ayyanthole and Thrissur, which is headed by Kannan, were based on Jijor’s statements and details dug up by ED sleuths.

“They [ED] had data on all of Satheeshkumar’s financial transactions over the last 10 years. They quizzed me on the transactions Satheeshkumar made in Karuvannur bank and other cooperative banks,” Jijor told TNIE.

Over 10 years, Satheeshkumar withdrew nearly `40 crore from Ayyanthole bank alone through three different accounts. The source of these funds is yet to be revealed, which makes the case more complex.
Kannan also had links with Satheeshkumar, say sources. For sanctioning loans and getting funds without delay, Kannan received a commission from Satheeshkumar, who transferred non-performing loans from other private banks to cooperative banks after convincing borrowers that it would protect them from revenue-recovery proceedings.

Raids in Thrissur & Ekm
The ED raided three document writers, a jewellery shop and its owners, and the house of Anil Kumar, all in Thrissur. It also raided the residence of businessman Deepak Sathyapalan near the High Court in Kochi. ED claims Deepak received money in the form of a loan from the Karuvannur bank. Anil Kumar, who is believed to enjoy close ties with CPM leaders, according to sources, has been in hiding for the past eight years after being involved in a `18.5 crore fraud linked to the Karuvannur bank.