ED to restore funds in money laundering cases including Karuvannur bank scam

Kochi, Feb 24 (PTI) The Directorate of Enforcement has initiated restituting properties and funds attached during money laundering investigations in eight cases, including the Karuvannur Service Cooperative Bank multi-crore scam, officials said.
    Addressing a press conference on Monday, officials from the ED Kochi Zonal Office stated that properties and funds worth Rs 128 crore were attached in the case.
    "We will approach the Prevention of Money Laundering Act (PMLA) court with a petition seeking permission to hand over the money to the bank, as it is also a victim in the case," an official said.
    The ED has decided to transfer the money to the bank, but they have not received a response from the bank despite ongoing communication over the past three months, officials added.
    So far, five victims of the scam have approached the ED seeking restitution, they said.
    They also stated that the second charge sheet in the case will be filed soon.
    This case of alleged fraud, which began in 2010 at the Thrissur-based Karuvannur Cooperative Bank, triggered a political controversy in Kerala two years ago, as many of the accused are ruling CPI(M) leaders.
    The money laundering case stems from 16 FIRs registered by the Kerala Police (Crime Branch) in Thrissur.
    After the Kerala Police registered the FIR in July 2021, a registrar audit found "diversions" of more than Rs 100 crore, the ED had said in 2022.
    In other economic offence cases, such as the Kandala Service Cooperative Bank scam, the Karakonam CSI Medical College case, the Popular Finance scam, the HighRich scam, the Keechery Enterprises cheating case, the Masters Finserve cheating case, and the Kodakara pipe money case, properties and funds have also been restituted to the victims.
    The ED has successfully restituted properties amounting to Rs 89.75 lakh to six people who had paid money to the accused under the pretext of securing admission to the MBBS course at CSI Medical College, Karakonam, in Thiruvananthapuram.
    An investigation under PMLA was initiated based on several FIRs registered against Dr Bennet Abraham and others, along with the corresponding charge sheets filed by the Kerala Crime Branch.
    During the investigation, it was revealed that the accused had collected money from parents and students under the false pretext of securing admissions to MBBS and PG courses at Dr SM CSI Medical College, Karakonam, despite knowing that such admissions had been discontinued following the introduction of NEET, according to a release issued by the ED.
    Furthermore, the Director, Dr Bennet Abraham, and the Comptroller of Dr SM CSI Medical College collected money from parents under the guise of donations or advance fees for admissions to MBBS and PG courses, the release added.
    Consequently, the Directorate of Enforcement took the initiative to restore or restitute the properties, which have now been successfully transferred to the affected persons.
    The ED is taking proactive steps to restitute the remaining proceeds of the crime to other victims upon their application before the ED and the Special Court, the release stated.

(This story has not been edited by THE WEEK and is auto-generated from PTI)