Kochi, Sept 26 (IANS): In an embarrassment for Kerala's ruling CPI-M. the Enforcement Directorate on Tuesday took into custody a party councillor in Thrissur in connection with the Karuvannur Service Cooperative Bank loan scam case.

P.R.Aravindakshan was let off after questioning early this month by the ED and six days after this, he approached the Kochi police with a complaint that he was beaten up by ED officials.

"I have done no wrong at all and am being harassed because I gave a police complaint against the ED," said Aravindakshan when he was brought to the ED office here.

However even though the local police quickly reached the ED office, no further action was taken on the complaint.

Ever since the ED unearthed the now over Rs 500 crore alleged bank scam a few weeks ago, the central agency has top CPI-M leaders like senior legislator and former state minister A.C.Moideen under its scanner.

The ED conducted a raid at his house and once questioned him at their office and he was asked to come a second time, but he ducked that and is yet to appear. But while Moideen failed to turn up, the ED asked a former party legislator M.K.Kannan to turn up and he did and after a seven hour questioning he was let off but has been asked to appear again on Friday.

Reacting to the custody of Aravindakshan, CPI-M state Secretary M.V.Govindan said the Centre is using national agencies to strangulate the strong cooperative sector in Kerala. Kannan said the ED’s next target will be Moideen and him.

Last week, the ED, apart from pursuing the Karuvannur loan scam, raided two more cooperative banks in Thrissur and this had sent the ruling CPI-M party and its top brass into a fizz.

Both the Congress and the BJP have charged the CPI-M and its leadership with being the kingpins in this massive scam.

With Aravindakshan, the ED has been in hot pursuit in this case and has arrested two persons -- P. Satheesh Kumar and P. Kiran. Incidentally the arrested have now been identified by the ED to have very close links with Moideen. The investigation has revealed that on the instruction of certain persons, who were district-level leaders and committee members of a "certain" political party, holding top positions, loans were disbursed by the bank manager through the agent in cash to "non-member benamis" by mortgaging properties of not so well-off individuals without their knowledge. It has come to light that many 'benami loans' were disbursed allegedly n the instructions of Moideen.