The Income Tax department has frozen a bank account belonging to the CPI(M)'s Thrissur district committee after the party reportedly failed to disclose its annual returns, while a clandestine account worth ₹4.8 crore in a nationalized bank has come under scrutiny.
The tax authorities grew suspicious when a substantial sum of ₹1 crore was recently withdrawn from the undisclosed account, raising questions about the source and purpose of the funds.
Furthermore, the lack of clarity regarding the individuals responsible for depositing and withdrawing money only deepened the intrigue surrounding the account.
This development comes amidst heightened scrutiny from both tax and enforcement agencies, with the Enforcement Directorate (ED) intensifying its investigation into the Karuvannur Bank scam in Thrissur district.
Prime Minister Narendra Modi's reference to the scam in a recent campaign speech has amplified the pressure on the CPI(M), with allegations of financial impropriety now looming over the party.
In response to the controversy, CPI(M) district secretary MM Varghese asserted that the party opened the account in accordance with regulations and denied any wrongdoing. However, the CPI(M) state secretariat in Thiruvananthapuram decried the freezing of the account as yet another instance of political targeting by the BJP using central agencies against its opponents.
As the election season heats up, the unfolding financial scandal threatens to cast a shadow over the CPI(M)'s electoral prospects and ignite a fierce political battle in Kerala's political landscape.