Kerala High Court Grants Bail To Former CPI (M) Municipal Councillor, Another In Alleged Karuvannur Bank 'Scam' Case

The Kerala High Court on Monday (December 2) granted bail to the former CPI(M) Municipal Councillor of Vadakkanchery Municipality Aravindakshan P. R. accused in the Karuvannur Bank Scam case investigated by the Enforcement Directorate. Justice C. S. Dias also granted bail to the former Senior Accountant of the Bank, Jilise C. K. Both of them were alleged to have committed offences punishable under Section 4 (punishment for money laundering) of Prevention of Money Laundering Act.As per the allegations, the Managing Committee of the Karuvannur Cooperative Bank in Thrissur committed massive financial irregularities and thereby siphoned huge amounts estimated to be around ₹100 crores. As per the case, the financial fraud was done by giving loans to the same person using the same property as collateral security, forging membership records of the Society and including persons who are not the members of the society. The management is also alleged to have manipulated the software of the computer system and disbursed loans in name of property owners without their consent or knowledge.The high court while granting bail noted that both the accused has been in judicial custody for the last 14 months. The court noted that investigation of the crime as far as the petitioners are concerned is completed. However, the investigation into the whole scam is still pending. The Court noted that the charge sheet in the crime has not been filed. The Court observed that there is not the remotest possibility of the trial commencing in the near future.The former Councillor is alleged to have accepted the money from the scam into his bank account. He contended that though some money was transferred by one of the accused, it was for a purpose unrelated to the scam.The allegation against the former Senior Accountant was that though he is not entitled to avail loan from the bank, he availed loans in the name of his family members and other persons. He said that his sign was forged in many loan applications where he is shown as co-applicant. The Court observed that both of them cannot be kept in custody for longer period as it will infringe their right to life under Article 21. The Court further observed that from the explanation put forth by the accused, there is reasonable ground to believe that the accused is not guilty.On these grounds, the Court granted the bail.Case No: BA 2339 of 2024Case Title: Aravindakshan P. R. v Assistant Director, ED and AnotherCitation: 2024 LiveLaw (Ker) 770

Kerala High Court Grants Bail To Former CPI (M) Municipal Councillor, Another In Alleged Karuvannur Bank 'Scam' Case

Manju Elsa Isac

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