Bhasurangan and his son Akhiljith JB were arrested by the ED on 21 November in Kochi over the alleged fraud.
Published Nov 24, 2023 | 7:19 PM ⚊ Updated Nov 24, 2023 | 7:19 PM
Depositors who lost their money are on dharna outside Kandala bank. (Supplied)
Expelled Kerala CPI leader N Bhasurangan played a key role in sanctioning “unauthorised” loans from Kandala service co-operative bank of which he was the president, the Enforcement Directorate (ED) has alleged after arresting him.
Bhasurangan and his son Akhiljith JB were arrested by the central agency on 21 November in Kochi.
A special Prevention of Money Laundering Act (PMLA) court in Ernakulam sent them to ED custody till 24 November.
The PMLA case stems from an FIR filed by the Maranalloor police station in Trivandrum against the president and senior officials of the bank.
“He (Bhasurangan) played a key role in sanctioning various unauthorised loans,” the agency said in a statement.
The federal agency had conducted raids in this case early this month after which Bhasurangan, a local CPI leader, was expelled from the Left party’s primary membership.
The probe found several “irregularities” in the management of the bank when the bank’s governing body was headed by its president N Bhasurangan, the agency claimed.
A preliminary probe found that irregularities of about ₹57 crore took place and the bank suffered “massive asset impairment” due to this, it said.
The ED found that the co-operative bank had given a loan of ₹2.04 crore to Maranalloor Ksheera Vyavasaya Sangam Limited, as Bhasurangan was also “managing” the affairs of that society.
It was found that multiple loans running into several crores were “fraudulently” given to his family members and relatives by mortgaging the same properties, the agency claimed.
The bank had not initiated any recovery proceedings in respect of the overdue loans availed by the family members and relatives of Bhasurangan, the ED said.
Earlier, when the allegations against Bhasurangan surfaced and the ED named him in the fraud case, CPI expelled him from the party.
The party alleged that Bhasurangan’s close association with top CPI and CPI(M) leaders helped him pull off the huge fraud. There are also allegations that he made monthly payments to these leaders in exchange for their alleged cooperation in the matter.
Bhasurangan was also removed from the position of Convenor of the Administrative Committee of the Kerala Co-operative Milk Marketing Federation (KCMMF) — Milma.
His removal from Milma was announced by the state Minister for Animal Husbandry, Dairy Development and Milk Co-operatives, J Chinchu Rani.
(With PTI inputs)
