Karuvannur bank scam accused used defaulters for benami loans: ED

KOCHI: The Enforcement Directorate (ED), which is probing the money laundering angle in the Rs 200-crore Karuvannur Service Cooperative Bank scam, has found that benami (proxy) loans were granted to persons who borrowed money from the prime accused, who runs an illegal money lending business in Thrissur. The agency also apprehends threats to witnesses from prime accused Satheeshkumar P, of Kolazhy, who allegedly operates a goon gang.

Last week, ED arrested Satheeshkumar and Kiran P P, of Perinjanam, who received loans of over Rs 24.5 crore. Although Kiran was not a member of the bank and did not live within its jurisdictional limits, his loan request was sanctioned by former bank manager Biju Karim. The ED investigation reportedly revealed that of the loan amount, Rs 14 crore went to Satheeshkumar.

It also spoke to several people who received loans illegally without any mortgage documents. ED officials reportedly gathered that most of them were benamis of Satheeshkumar. “Satheeshkumar lent money without following proper norms and at exorbitant interest rates. When borrowers defaulted on their payments, he put their land documents to use. Loans were taken from the bank using their personal IDs and documents. He recovered the borrowed amount from defaulters using such methods. A part of the money was given to borrowers. Several benami loans were granted to persons who were in the dark about amounts taken in their name,” said an ED official.

According to officials, Satheeshkumar was feared because of his links to thugs, whom he employed for loan recoveries. “If that did not work, he used borrowers’ documents to create loan accounts at Karuvannur Bank to get his money back. People are afraid of registering complaints against him. He also has good connections with politicians and police officers. No cases have been registered against him,” an official said.

CA denies possessing money lending biz papers

During questioning, Satheeshkumar said all documents and receipts linked to his money-lending activity were with his chartered accountant, Sanil Kumar. However, Sanil denied being in possession of any such documents. Sanil also denied knowledge of account books that the accused told ED was maintained by him.

The central agency also found several immovable properties purchased in the name of Satheeshkumar’s wife, Bindu C G. The prime accused disclosed that those were bought with her earnings as a tuition teacher. However, Sanil submitted that Bindu was a homemaker and that he was directed by Satheeshkumar to declare her tuition income — which amounted to around Rs 4-5 lakh since 2016-17 — as the source of his income.

On Friday, ED filed a report with the PMLA court in Kochi stating that Satheeshkumar is a benami of high-profile politicians, including an MLA and former MP. He also manages the funds of several top police officers and politicians, it said. A witness disclosed that Satheeshkumar’s money lending business is worth Rs 500 crore and that he counts CPM local leaders Aravindhakshan and Madhu among his aides.