A mysterious and secret account in a nationalised bank belonging to the ruling CPI-M has put the party in an embarrassing position ahead of the Lok Sabha election. Since the `4.8 crore in the account was not declared or part of the annual returns filed by the party, the Income Tax (investigation) Dept stepped in and froze the account that is in the name of the CPI(M)’s Thrissur district committee.
Taxmen's Concerns Regarding Unregistered Bank Account
What alerted the taxmen was the recent withdrawal of `1 crore from the account. There is also no clarity on who was depositing and who was withdrawing the money.
Several other accounts of CPI(M) were cited in the party’s annual returns but this account was not declared. The party has been asked to prove that this account and the money is legitimate.
The department recently conducted surprise raids in Thrissur and Ernakulam based on the information it received about the account.
Income Tax Department's Move Following ED's Probe Into Karuvannur Bank Scam
The action comes close on the heels of the ED intensifying its probe into the Karuvannur Bank scam in Thrissur district which Prime Minister Narendra Modi mentioned in one of his recent election speeches. He is due to campaign in the area and is sure to take up the scam to target the CPI(M).
Meanwhile, CPI(M) district secretary MM Varghese said the party started an account in Bank of India in Thrissur strictly adhering to rules, and the party had nothing to hide. In Thiruvananthapuram, the CPI(M) state secretariat registered its protest against the freezing of the bank account. The intervention was another example of BJP using central agencies against political opponents, it said.
