Enforcement Directorate Charges Communist Party of India (Marxist) in Bank Fraud Case

Charges Filed Against CPI(M) Leaders

On Monday, the Enforcement Directorate officially implicated the Communist Party of India (Marxist) in a chargesheet related to an alleged embezzlement case involving a bank associated with the party, as reported by a news outlet.

The chargesheet also identifies eight leaders from the Communist Party of India (Marxist) in Kerala, including Lok Sabha MP K Radhakrishnan, former state minister AC Moitheen, and MM Varghese, the party's former Thrissur district secretary.

This marks the second instance where the Enforcement Directorate has designated a political party as an accused under the Prevention of Money Laundering Act, following the naming of the Aam Aadmi Party in connection with the alleged Delhi liquor policy scandal last May.

The investigation into the Communist Party of India (Marxist) leaders commenced after the Crime Branch claimed that approximately Rs 300 crore had been misappropriated by party officials from the Karuvannur Cooperative Bank, according to reports.

The Enforcement Directorate has accused Radhakrishnan, Moitheen, and Varghese of facilitating illegal loans from the bank during their time as district secretaries, with a portion of these funds allegedly redirected to the party's financial resources.

The chargesheet includes testimony from a bank employee, Biju MK, who has turned approver in the case. Biju reportedly informed a magistrate that members of the Communist Party of India (Marxist)’s district committee coerced bank officials into approving illegal loans, with some of the funds being funneled back to the party.

MV Govindan, the state secretary of the Communist Party of India (Marxist), has claimed that the actions of the Enforcement Directorate are politically motivated, as reported by another news outlet.

“The people of Kerala are aware of these schemes,” Govindan stated. “The CPM will address this issue both politically and through legal channels.”

He referenced a statement made by the Union Ministry of Finance in Parliament in March, which indicated that there had only been two convictions out of 193 cases filed by the Enforcement Directorate against political figures over the past decade.

“This clearly reveals a politically biased strategy aimed at harassing opposition leaders without substantial evidence,” Govindan was quoted as saying. He asserted that the party had taken decisive measures against those allegedly involved in the bank fraud.