ED: depositors can be paid using property of accused

The Directorate of Enforcement (ED) has informed the Special Court considering the Karuvannur Service Cooperative Bank scam that the claims of the depositors over the property of accused that were attached by the agency could be considered.

The ED filed a counteraffidavit in a petition filed by Mahadevan, who had deposited ₹33.27 lakh in the bank.

Deposits diverted

The petitioner informed the court that he could not withdraw the money as the bank had collapsed due to the act of the accused.

The ED had questioned a few CPI(M) leaders in connection with the scam. The ED informed the court that the investigation had revealed that the deposits in the bank were diverted to the accused through illegal loans. Loans were granted to the accused by flouting rules, which resulted in defaulting of the loans. This led to a situation where the bank failed to release the deposits.

The investigation agency informed the Special Court that it could consider the claims for the restoration of the property even during the course of the trial as specified in the Prevention of MoneyLaundering (Restoration of Confiscated Property) Rules,

Attaching properties

The Adjudicating Authority of the Prevention of Money Laundering Act, New Delhi, had confirmed the provisional attachment of various immovable properties, including the bank accounts of the various accused, the ED noted.

The agency told the court that the petitioner had suffered a quantifiable loss due to money laundering by the accused. If the accused had not acquired the proceeds of crime through illegal loan, the petitioner could have realised his deposit in time.