After Congress, CPM Faces Heat From I-T Department, Bank Accounts Containing Rs 4.8 Crore Frozen Over Undisclosed Funds

After the Congress party received notices from the income tax department, the Communist Party of India (Marxist) [CPM] faced a similar situation as one of its bank accounts containing Rs 4.8 crore was frozen.

This action was taken following the unexpected interrogation of CPM Thrissur district secretary M M Varghese by Income Tax (I-T) officials at the Enforcement Directorate (ED) office in Kochi.

The interrogation was part of a probe into a money-laundering case related to the Karuvannur Service Cooperative Bank scam as per a report by The New Indian Express.

The account, held in a nationalised bank in Thrissur, drew attention when Rs 1 crore was recently withdrawn from it.

An I-T official stated, "The bank account, opened in 1998 in the name of the CPM Thrissur district committee, was not disclosed in the party's I-T returns. Currently, there is Rs 4.8 crore in the account, which has been frozen for investigation. Transactions made through the account are under scrutiny. Additionally, efforts are being made to identify any undisclosed accounts belonging to the party in other Kerala banks."

This move was initiated by an I-T special team monitoring the flow of black money for the upcoming Lok Sabha elections. The I-T department will consider penal measures against the CPM if the party fails to provide a satisfactory explanation regarding the bank account.

The ED, in its probe into the Karuvannur Bank money laundering case, alleged that the Left party maintained undisclosed bank accounts in the bank.

This marks the first instance of the income tax department probing bank transactions of the CPM.

Following the interrogation, I-T searches were conducted at various locations in Thrissur and Ernakulam. However, specific details regarding the premises subject to the searches were not disclosed by I-T officials, who collected documents as part of the operation.

Approximately Rs 3.2 crore suspected to be black money intended for use in the upcoming elections has been seized from various parts of the state.

The special team, comprising around 150 officials deployed across the state, is monitoring black money flow and scrutinising suspicious bank transactions.