With the Lok Sabha elections around the corner, the multi-crore Karuvannur loan scam has come back to haunt the LDF. The CPI(M) has found itself in a tight spot with the Enforcement Directorate (ED) recording the statements of CPI(M) Thrissur district secretary M.M. Varghese, Thrissur Corporation councillor P.K. Shajan, and Ex-MP P.K. Biju.
The ED’s move was part of the second phase of its investigation into the loan scam. Mr. Varghese was questioned by the ED last November too.
Accounts frozen
The noose is tightening around the neck of CPI(M) as Mr. Varghese, a veteran CPI(M) leader, was also questioned by the income tax officials. To add to the woes, the Income Tax department has frozen one of the bank accounts of the CPI(M) Thrissur district committee. Even as the party leadership stressed that their bank accounts were transparent, it was found that the transactions were not shown in the annual returns filed by the party. A recent withdrawal of ₹1 crore from the account was also noticed.
The multi-core loan scam at Karuvannur Service Co-operative Bank, affecting hundreds of depositors, had shaken the roots of the cooperative sector, which has been the backbone of the rural economy in the State. The financial misappropriation and money laundering in the Left-led bank in Karuvannurhas been a major issue discussed in the Lok Sabha campaigns in the State, especially in the Thrissur constituency.
Even as the Kerala High Court recently criticised the ED for the delay in completing its investigation into the scam, the Congress leaders have been alleging a secret understanding between the BJP and the CPI(M) to protect prominent left leaders in the Karuvannur issue.
National attention
On the other hand, Prime Minister Narendra Modi has recently brought national attention into the loan scam and warned of stringent action against those who are involved in it. He also promised to return the money seized by the ED to the investors.
There are speculations that the Prime Minister will visit Karuvannur as part of election campaigning. It is reported that the Special Protection Group has sought a report from the Intelligence bureau about the security arrangements.
Reiterating their allegation, the left leaders stressed that the ongoing ED investigation is part of political vendetta of the BJP against the Opposition parties using the Central agencies.
