ED Investigates AC Moideen’s Alleged Benami Deals and Links to Cooperative Bank Scam

The Enforcement Directorate (ED) plans to interrogate AC Moideen, a former minister and CPM state committee member, regarding his alleged involvement in the Karuvannur Cooperative Bank scam in Thrissur. Moideen is expected to be summoned for questioning soon. As part of their investigation, the ED has frozen a fixed deposit worth Rs 30 lakh owned by Moideen, deeming it as undisclosed funds. During a recent raid, potential links between Moideen and individuals suspected to be holding properties on his behalf were discovered.

In addition, the ED has obtained information about a purported telephone conversation between Biju Karim, the former manager of the Karuvannur branch, and Moideen, discussing financial transactions. It has come to light that significant loans were irregularly sanctioned upon Moideen’s request. Concomitantly, searches were conducted at the residences of Anil Subhash, Sathish, Shiju, and Rahim, who are believed to be acting as proxies for Moideen. These raids unveiled documents, including financial records. The ED has identified certain individuals who allegedly possess 25 to 50 accounts in the Karuvannur Bank, suspected to have been employed for concealed transactions. Under Moideen’s purported influence, the bank is alleged to have granted loans amounting to Rs 45 crore to these supposed proxies. Prior to summoning Moideen, the ED intends to question these individuals.

This move by the ED coincides with the apparent decision of the Cooperative Department to conclude its inquiry by implicating only former administrative members and staff in the fraud. Moideen held a ministerial position in the state cabinet from 2016 to 2018. Interestingly, even before he assumed office, senior officials from the cooperative department had compiled a report on the scam. Allegations have surfaced that Moideen tried to suppress the findings and evade taking action when approached by Cooperative Registrars.