The Communist Party of India (Marxist) [CPI(M)] and several prominent party leaders from the Thrissur district, including K. Radhakrishnan MP, have been charged by the Directorate of Enforcement (ED) with involvement in the Karuvannur Service Cooperative Bank loan scam.
As the 70th defendant in the case, Mr. Radhakrishnan was arraigned on Monday, May 26, 2025, in the second round of final complaints. The 68th accused on the list is the CPI(M). In the final complaint submitted to the Special Court hearing the charges brought under the Prevention of Money Laundering Act (PMLA), the investigating agency named 27 defendants. There are currently 83 defendants in the case.
A. R. Peethambaran, the secretary of the Porathussery North local committee; M. B. Raju, the secretary of the Porathussery South local committee; Madhu Ambalapuram, a municipal councillor of Wadakkanchery municipality; former Minister A.C. Moideen; former party Thrissur district secretary M. M. Varghese; and K. C. Premarajan, the secretary of the Irinjalakuda area committee, have also been named as accused in the case.
In the ED case, the bank, which was under the CPI(M)’s control, had made loans through dishonest means, causing it and the depositors to suffer significant financial losses. Additionally, it was claimed that the loans were given out without enough collateral security and in contravention of the norms and regulations.
The suspects allegedly committed ₹180 crore in financial fraud, according to the agency. Property valued at ₹128 crore was temporarily seized by the ED. The case and the scandal caused a stir in Keralan politics, with the BJP and opposition criticising the CPI (M).
During the 2024 parliamentary election, Prime Minister Modi made reference to the issue in his campaign speeches in the Thrissur area, where the BJP ran a heavy campaign against the CPI(M). Based on the FIRs filed in the matter, the ED invoked the PMLA to book the case. The probe was then taken over by the Crime Branch. After the Crime Branch sought the files that the ED had confiscated, the two agencies got into a heated argument.
