2024-02-05 17:34:08
New Delhi ∙ The Enforcement Directorate (ED) upheld the confiscation of property of CPM leader A.C. Moithin in connection with the Karuvannur Cooperative Bank fraud. The Delhi Adjudicating Authority upheld the ED action. 40 lakh rupees in 6 accounts of Moitin and his wife were confiscated by ED. ED said that the benami transactions were done on the instructions of Moitin.
The authority is under Section 6(1) of the Prevention of Money Laundering Act (PMLA), which functions as part of the Revenue Department of the Ministry of Finance. There is a provision in PMLA that confiscation action as part of ED investigation should be verified and approved by this authority.
40 lakhs was confiscated as part of the Rs 150 crore investment fraud in the Karuvannur Co-operative Bank. Earlier, Moitin’s house was raided and investment documents were recovered. ED froze the investment that same day. This money was confiscated after Moitin was interrogated. The authority accepted the ED’s contention that the source of the investment could not be proved.
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