CPM named in money laundering case: Can ED name a political party as accused?

CPI(M) as 68th accused

The ED has listed the CPI(M), or CPM, as the 68th among a list of 83 accused. Among the 83, seven are CPI(M) functionaries, existing or former. Three senior leaders, K Radhakrishnan MP, former minister A C Moitheen, and senior leader M M Varghese, have been accused as persons who had served as district secretary of the party from 2011 to 2021.

CPI(M) booked under section 70 of PMLA

The CPM is a political party registered under Section 29A of The Representation of the People Act, 1951. Under this section, only an association or body of individuals can apply to register as a political party.

The ED has made CPM an accused in the money laundering case under section 70 of the Prevention of Money Laundering Act, which deals with offences by companies. According to the section, a ‘company’ means any corporate body and includes a firm or other association of individuals.

The ED argued that as the CPM is identified as an association of individuals under the Representation of the People Act, it falls within the definition of ‘company’ under the PMLA.

What is the Karuvannur Co-operative Bank case?

The Karuvannur Co-operative Bank money laundering case was initially investigated by the state Crime Branch, which said an estimated Rs 300 crore had been siphoned off from the bank. Later, the ED initiated a probe under the PMLA.

The ED alleged that the three leaders — Radhakrishnan, Moitheen and Varghese — during their stints as the district secretary of the CPI(M) had helped people get illegal loans, of which a certain amount was channelised to the party fund.

According to the chargesheet, a bank employee named Biju M K, who was made an approver in the case, had confessed before a magistrate court that the CPI(M) district committee members put pressure on the bank authorities to grant illegal loans.

The party had maintained five illegal accounts with the Karuvannur bank and proceeds of crime were parked in these accounts, the ED claimed.

Is it common for political parties as a whole to be accused?

This is only the second instance where the ED has named a political party as an accused under the PMLA. Last year, it had named the AAP as an accused in the alleged liquor scam case.