It is alleged that CPI(M) knew about the scam and appointed an inquiry commission
The party will not protect the CPI(M) members in the committee of Karuvannur Service Co-operative Bank if they are found guilty in the loan scam, CPI(M) district secretary M.M. Varghese has said.
“There is no place for those who commit fraud in the party. If they are found guilty they will be expelled from the party,” Mr. Varghese said.
A loan scam of more than ₹100 cr was reported at Karuvannur Service Co-operative Bank, near Irinjalakuda, controlled by the CPI(M) , on July 19.
The police have registered a case against six persons, including the secretary of the bank in this connection. The secretary is already under suspension.
An audit of the Joint Registrar of Cooperative Societies found that loans were sanctioned on property pledged by local customers without their knowledge. Fake applications for loans were submitted. The loan amounts were credited multiple times to selected accounts.
It is reported that loans have been sectioned on 46 documents pledged at the bank. Customers came to know about the scam when they were issued arrear notices of loan payment. More people have come up with complaints of cheating. The joint registrar has sought explanation from the bank officials.
Party conducted probe
It is alleged that the CPI(M) knew about the scam even before. It is reported that the CPI(M) district committee, which received complaints, appointed a two member commission, with former MP P.K. Biju and district secretariat member P.K. Shajan as members, for inquiry. The commission found irregularities in the functioning of the bank and recommended inquiry against the committee members. The report was submitted two months back. The report demanded action against the bank officials.
Secretary T.R. Sunil Kumar, an active CPI(M) worker, was kept under suspension in April.
A case has been registered against six people — secretary T.R. Sunil Kumar, branch manager M.K. Biju, senior accountant c.k. Jilse, commission agent A.K. Bijoy and accountant of a supermarket under the bank Raji Anil and mediator Kiran, according to Irinjalakuda Circle Inspector M.J. Jijo.
The BJP and the Congress have been staging protests in front of the bank and its branches, which are under control of the CPI(M) for many years, alleging irregularities in the functioning of the bank for some time. It is reported that local people had come up with allegations against the bank even in 2019.
As there was news that bank committee was disbanded many depositors reached the bank demanding their deposits back. However, Joint Registrar Mohanmon P. Joseph denied the news and said that inquiry was progressing.
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