Karuvannur bank fraud case: Bail applications of Aravindakshan, Jilse dismissed by Special Court

ED probed money laundering angle in multi-crore bank fraud case. Bail applications of CPI(M) Wadakkanchery municipal councillor P.R. Aravindakshan and C.K. Jilse dismissed by Special Court. Loans illegally sanctioned and disbursed without sufficient collateral. Bogus loans for huge amounts released to persons on same property multiple times. Benami loans sanctioned to non-members against inflated property valuations. Accused beneficiaries siphoned off and laundered funds. ED arrested P. Satheesh Kumar, P.P. Kiran of Thrissur. Close links between Aravindakshan and Satheesh Kumar. ED questioned CPI (M) leaders A.C. Moideen and M.K. Kannan. Special Court dismisses bail applications of Aravindakshan and Jilse in money laundering case.

The bail applications of CPI(M) Wadakkanchery municipal councillor P.R. Aravindakshan and C.K. Jilse, an accountant of the Karuvannur Service Co-operative Bank, were dismissed by the Special Court trying the offences registered under the Prevention of Money Laundering Act on October 27, 2023 (Friday).

The Directorate of Enforcement (ED) had arrested the two earlier in connection with the multi-crore bank fraud case. The reasons for dismissing the bail application will be known when the court uploads the order.

The ED probed the money laundering angle in the case after the Kerala Police registered an FIR in the bank fraud case.

The ED had alleged that loans were illegally sanctioned and disbursed from the bank to several individuals and their benamis without securing sufficient collateral. The fraud was committed by the secretary and committee members of the bank in connivance with the then-bank manager, the agency said.

It had alleged that bogus loans for huge amounts were sanctioned by the bank in violation of the rules and procedures. Loans were also found released to persons on the same property multiple times without the knowledge of members of the cooperative society.

Investigations also revealed that benami loans were sanctioned to persons who were not members of the bank and that too against inflated property valuations. The loans thus sanctioned were siphoned off and laundered by the accused beneficiaries, the agency had alleged.

The ED had earlier arrested P. Satheesh Kumar, a money lender, and P.P. Kiran of Thrissur in the case.