Enforcement Directorate Names CPM District Units in Money Laundering Case

Strategic Insights -

The Enforcement Directorate (ED) has made Kerala district units of the Communist Party of India (Marxist) (CPM) accused in a money laundering case arising from the embezzlement of Rs 150 crores from the Thrissur-based Karuvannur Cooperative Bank. This is the second instance of a political formation being named as an accused in a case by the ED. The other accused include senior party leaders from the state, including Lok Sabha MP K Radhakrishnan, who was interrogated last month. The ED has treated the CPM units like a company defined under section 70 of the Prevention of Money Laundering Act (PMLA) and booked them for laundering money or receiving bribes.

Key Takeaways:

  • The ED has named Kerala district units of the CPM in a money laundering case, making them the second political formation to be accused by the agency.
  • The CPM units have been accused of embezzling Rs 150 crores from the Thrissur-based Karuvannur Cooperative Bank.
  • Senior party leaders, including Lok Sabha MP K Radhakrishnan, are also accused in the case.
  • The ED has treated the CPM units like a company under section 70 of the PMLA and booked them for laundering money or receiving bribes.
  • The agency has found that the CPM units maintained at least 25 undisclosed bank accounts with a total balance of Rs 1.73 crores and fixed deposits of Rs 64 lakhs.
  • Many of these bank accounts were not disclosed by the party, and the agency has found that the sources of deposits were party levy, party fund, election fund, building fund, and collection from beneficiary loaners.

Statistics:

  • Rs 150 crores: The amount embezzled from the Thrissur-based Karuvannur Cooperative Bank.
  • Rs 1.73 crores: The total balance in the undisclosed bank accounts maintained by the CPM units.
  • Rs 64 lakhs: The total fixed deposits in the undisclosed bank accounts maintained by the CPM units.
  • 25: The number of undisclosed bank accounts maintained by the CPM units.

Sources:

  • The Enforcement Directorate has filed a prosecution complaint (chargesheet) before a special court.
  • Lok Sabha MP K Radhakrishnan was interrogated last month.
  • The Prevention of Money Laundering Act (PMLA) and its section 70 are mentioned in the investigation report.