Kochi, June 6, 2026 – In a significant development in Kerala’s political landscape, a Special Court for Prevention of Money Laundering Act (PMLA) cases has accepted the supplementary chargesheet filed against the Communist Party of India (Marxist) [CPI(M)] and several of its top leaders in the Karuvannur Service Cooperative Bank money laundering case.
Key Facts of the Development
Judge Sabarinathan P of the Special PMLA Court in Kochi accepted the supplementary chargesheet on Saturday, June 6, 2026, against 28 accused entities. This marks a crucial procedural milestone in the case, which has sent shockwaves through Kerala’s political establishment.
The Enforcement Directorate (ED) had originally filed the supplementary chargesheet in May 2025 against the CPI(M) and 27 other accused persons. The court’s acceptance of this chargesheet means the case will now proceed to trial, with the prosecution formally presenting its case against the party and its leaders.
Accused Named in the Chargesheet
The chargesheet names several prominent CPI(M) leaders, including:
This makes CPI(M) the second political party in India after AAP (Delhi) to face an ED chargesheet in a money laundering case.
Details of the Alleged Money Laundering
The Fraud Scheme
The case revolves around allegations that officials of the CPI(M)-managed Karuvannur Service Cooperative Bank, in collusion with others, diverted depositors’ funds through fraudulent loans. According to the ED investigation:
- Bogus loans were sanctioned multiple times against the same property without members’ knowledge
- Benami loans were granted to non-members against inflated property valuations
- Cash disbursements were made to non-member benamis by mortgaging poor members’ properties without their consent
- Funds were siphoned off and laundered by the accused beneficiaries
Financial Scale
The financial magnitude of the alleged fraud is substantial:
ED’s Allegations Against CPI(M)
The ED’s prosecution complaint makes a serious allegation against the party itself. According to the agency:
“Similar undisclosed accounts were being maintained by the CPI(M) party at every level in every district in a decentralized manner. Therefore CPI(M) party is indulged in the process of money laundering and thereby CPI(M) party is guilty of the offence of money laundering as specified under Section 3 which is punishable under section 4 of the said Act”
The ED allegedly discovered nearly 25 bank accounts under the names of the district and area committees of CPI(M) in Thrissur alone. The agency claims that during their stints as district secretary, the three top leaders—Radhakrishnan, Moideen, and Varghese—assisted other accused persons in availing illegal loans, with a certain amount channelized to party funds.
Arrests Made in the Case
Several individuals have been arrested under the Prevention of Money Laundering Act, 2002:
- Satheesh Kumar – Moneylender
- PP Kiran – Native of Thrissur
- PR Aravindakshan – CPI(M) councillor, Wadakkanchery municipality
- CK Jils – Bank accountant
These individuals are accused of being the primary beneficiaries of the fraudulently sanctioned loans. The total number of accused in the case now stands at 83.
ED’s Asset Seizure Actions
On June 29, 2025, the ED temporarily seized CPI(M)’s Porathissery office land and several bank accounts in Thrissur district. This marks the first instance in Kerala where a political party has been implicated in such a case.
Among the seized assets:
- A 5-cent plot registered in the name of Thrissur CPI(M) district secretary M.M. Varghese
- Deposits in the party’s bank accounts and district committee accounts
Interrogations Conducted
The ED has interrogated several high-profile party members, including:
- M.M. Varghese (former district secretary)
- A.C. Moideen (former minister)
- P.K. Biju (party leader)
- M.K. Kannan (party leader)
Political Reactions and Context
The case has triggered a significant political controversy in Kerala. The CPI(M) has maintained that it has done nothing wrong and has denied all allegations. The bank fraud allegedly began in 2010 and has been under investigation by both the Kerala Police Crime Branch and the ED.
The State Crime Branch initially investigated the case before the ED took over under PMLA provisions. The case stems from 16 FIRs registered by Kerala Police in Thrissur.
Significance of the Court’s Decision
The court’s acceptance of the chargesheet is procedurally significant because:
- It formally initiates the trial phase against the CPI(M) and its leaders
- It validates the ED’s investigation and evidence collection
- It makes CPI(M) the second political party in India to face such charges after AAP
- It represents an unprecedented legal challenge to a ruling state party
What Happens Next
With the chargesheet accepted, the trial will proceed before the Special PMLA Court. The prosecution will present its evidence, and the accused will have the opportunity to present their defense. The case is expected to be closely watched given the political implications and the involvement of serving MPs, MLAs, and a major political party.
The outcome of this trial could have far-reaching consequences for Kerala’s political landscape and set important precedents for political party accountability in money laundering cases across India.