The Special Court for the Prevention of Money Laundering Act (PMLA) in Kochi on Saturday accepted the supplementary chargesheet filed by the Enforcement Directorate (ED) against 29 accused, including the CPI(M) and several of its leaders, in the alleged money laundering case related to the Karuvannur Service Cooperative Bank in Thrissur.

The court is set to issue summons to those named in the supplementary chargesheet and direct them to appear on July 4. Of the total 83 accused in the case, two have turned approvers, while two others have died. So far, the ED has attached properties and assets worth ₹128 crore in connection with the case. Trial in the case is likely to begin soon, said sources.

It is alleged that ₹180 crore was laundered through fraudulent loans by the bank. The ED filed its first chargesheet against 55 accused in the Karuvannur loan fraud case on November 1, 2023. This followed the the arrest of CPI(M) Wadakkanchery former municipal councillor P.R. Aravindakshan, private money lender P. Satheeshkumar, bank accountant C.K. Jilse, and P.P. Kiran of Thrissur under PMLA provisions.

In May last year, the agency filed a supplementary chargesheet against 29 more accused. This included CPI(M) leaders such as Lok Sabha MP K. Radhakrishnan, former MLA A.C. Moideen, former Thrissur district secretary M.M. Varghese, and several local and area committee secretaries.

Prosecution’s case

The prosecution case is that the accused, in connivance with bank officials, siphoned off money generated from fake loans. Investigations revealed that several bogus loans were sanctioned on the same property multiple times without the knowledge of society members. Benami loans were also issued to persons who were not members of the bank, often against inflated property valuations. The loans thus sanctioned were allegedly siphoned off and laundered by the accused.