Dating back to 2010, the scam involved issuing cash loans to non-member benamis by mortgaging poor members' properties—often repeatedly—without their knowledge, exposing deep-rooted malpractice in cooperative banking
Published May 26, 2025 | 5:05 PM ⚊ Updated May 26, 2025 | 5:05 PM
Karuvannur cooperative bank scam: ED files final chargesheet, names CPM and 28 others
Synopsis: The ED has filed its final chargesheet in the Karuvannur Cooperative Bank scam, naming the CPI(M) and 28 others, including top Thrissur leaders. The accused tally now stands at 83. The ED alleges ₹180 crore was siphoned off through fraudulent loans, with assets worth ₹128 crore seized. The scam has intensified scrutiny of political interference in cooperative bank operations
The Enforcement Directorate (ED) has filed its final chargesheet in the Karuvannur Cooperative Bank scam, naming the Communist Party of India (Marxist) and 28 individuals, including the party’s former Thrissur district secretaries AC Moideen, MM Varghese, and MP K Radhakrishnan.
With this, the total number of accused people has risen to 83.
According to the ED, approximately ₹180 crore was siphoned off through fraudulent loans, and assets worth ₹128 crore have been seized in connection with the scam.
The chargesheet alleges that the CPI(M) actively interfered in the bank’s operations and knowingly used funds from the scam for party-related expenses, including property purchases. Senior party leaders AC Moideen, MM Varghese, and K Radhakrishnan are accused of facilitating and securing illegal loans.
Moideen allegedly aided key suspects in accessing funds, while Varghese and Radhakrishnan are said to have helped mobilize funds for the party using these fraudulent loans.
Other local CPI(M) leaders named in the chargesheet include Madhu Ambalapuram, AR Peethambaran, MB Raju, and KC Premajan.
However, the final chargesheet notably excludes several high-profile names mentioned earlier during the probe.
These include Industries Minister P Rajeeve, Kerala Bank Vice-President MK Kannan, and former MPs Paloli Mohammed Kutty and PK Biju.
This omission comes despite the ED informing the Kerala High Court in April that these leaders had pressured bank officials to sanction illegal loans.
CPI(M) State Secretary MV Govindan dismissed the ED’s charges as politically motivated, reiterating the party’s stance that it had no role in the scam.
The money laundering case stems from 16 FIRs filed by the Kerala Police Crime Branch in Thrissur.
The scam, which dates back to 2010, involved disbursing cash loans to non-member benamis using properties mortgaged by unsuspecting poor members.
In many instances, the same property was used multiple times without the owners’ knowledge.
The ED’s probe revealed that loans were granted based on inflated property valuations and that the funds were laundered through a network of benami accounts. Four individuals have been arrested so far in connection with the case.
Beyond highlighting significant vulnerabilities in Kerala’s cooperative banking system, the Karuvannur scam has triggered widespread political fallout.
The investigation has raised serious questions about regulatory oversight and the role of party leadership in enabling or ignoring fraudulent practices within cooperative institutions.
(Edited by Ananya Rao with inputs from Sreelakshmi Soman)
