The CPI(M)-led LDF government in Kerala faced opposition heat in the state assembly on Friday over a Rs 1 crore loan scam that surfaced in a co-operative bank controlled by the party, as the latter alleged It was felt that the party leadership had put the scam down. Although he has a clear idea about the fraud. Raising the issue during Zero Hour, the Congress-UDF wanted the House to be adjourned to discuss the matter, which they called the “biggest bank robbery” in the history of the southern state.
Although the fraud came to light in 2018, the Governing Council of the Caravannur Co-operative Bank at Irinjalakuda in Thrissur district was dismissed on Thursday, justifying its allegation that the Marxist party had decided to keep the fraud a secret . “What were you doing in these three years,” asked Leader of the Opposition VD Satheesan.
The crime also shamed the popular robbery series that continued in OTT platforms, before he walked out of the House to protest Speaker MB Rajesh’s refusal to allow the motion of adjournment. In his reply, Cooperation Minister VN Vasavan, however, denied the allegations and said that the government acted immediately and seven bank employees allegedly involved in the fraud had already been suspended.
The complaint in this regard was first registered on 16 January 2019 and the police registered the case within a week. On allegations of delay in sacking the bank’s governing council, the minister said that before doing so, certain mandatory proceedings, including investigation, have to be followed.
The minister said irregularities of over Rs 104 crore were estimated. “The crime branch probe into the incident is underway. The cooperative department is also conducting a separate investigation,” Vasavan said.
Congress MLA Shafi Parambil, who presented the notice for the resolution, alleged that the ruling CPI(M) has led the biggest ever bank robbery in the history of the state. The situation was that the account holders who had not taken a loan of even a rupee, had to repay up to Rs 100 crore.
The Palakkad MLA also alleged that the party itself had probed the scam, but kept all the findings confirming irregularities a secret over the years. An alleged loan scam of over Rs 100 crore has been received in Karavannur Co-operative Bank, following which the police have registered a case against six bank officials and started investigation.
After several people, including local customers, raised apprehensions about the functioning of the bank, an audit was conducted there recently, in which the allegations were reportedly found to be true. During inspection, it was also found that loans were sanctioned against mortgaged property by local customers without their knowledge and loan amount was deposited multiple times in selected accounts.
A case was registered against the bank’s officials, including the bank’s secretary, who had already been suspended on the charges.
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