Money Laundering Probe: CPI(M) MP K Radhakrishnan Under Scrutiny

CPI(M) MP K Radhakrishnan has been summoned by the Enforcement Directorate for potential involvement in a money laundering case tied to irregularities in Karuvannur Service Cooperative Bank. The investigation, based on multiple FIRs, involves bogus loans and funds siphoning. CPI(M) denies allegations, plans legal and political defense.

The Enforcement Directorate (ED) has summoned CPI(M) MP K Radhakrishnan for questioning in a case of alleged money laundering associated with the Karuvannur Service Cooperative Bank. Official sources disclosed that the questioning is scheduled for March 15 under the Prevention of Money Laundering Act (PMLA).

The investigation has its roots in several FIRs filed by the Kerala Police Crime Branch in 2021, revealing purported irregularities worth Rs 150 crore in the bank managed by CPI(M). The ED's inquiry unearthed fraudulent loans sanctioned against repeated property collateral without cooperative society members' knowledge.

Further inquiries indicated that fictitious loans were granted to non-members based on inflated property valuations with funds subsequently diverted and laundered. Raids conducted in late 2023 resulted in four arrests and the seizure of assets valued at Rs 117 crore. Allegations claim CPI(M) received donations from these transactions, which the party denies, vowing to contest the claims both legally and politically.

(With inputs from agencies.)