Bank loan

Karuvannur Bank Loan Scam | No place in the party if members of the bank committee are found guilty: Varghese du CPI (M)


It is alleged that CPI (M) was aware of the scam and appointed a commission of inquiry

Party will not protect CPI (M) members in the Karuvannur Services Cooperative Bank committee if convicted of the loan scam, said CPI (M) district secretary MM Varghese .

“There is no place for those who commit fraud in the party. If they are found guilty, they will be expelled from the party, ”Varghese said.

A loan scam of over 100 cr was reported to the Karuvannur Cooperative Service Bank, near Irinjalakuda, controlled by the CPI (M), on July 19.

The police registered a complaint against six people, including the bank secretary in this regard. The secretary is already suspended.

An audit by the Joint Registrar of Cooperative Societies found that loans were sanctioned on property pledged by local customers without their knowledge. False loan applications have been submitted. Loan amounts were credited multiple times to selected accounts.

It is reported that the loans were divided into 46 documents pledged to the bank. Customers were made aware of the scam when they received late payment notices for the loan. More and more people have complained about cheating. The co-registrar asked the bank officials for an explanation.

Party-led poll

It is alleged that 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 PK Biju and district secretariat member PK Shajan as members, for investigation. The commission found irregularities in the functioning of the bank and recommended an investigation against the members of the committee. The report was submitted two months ago. The report called for action against bank officials.

Secretary TR Sunil Kumar, an active CPI (M) worker, was suspended in April.

A case was registered against six people – secretary TR Sunil Kumar, branch manager MK Biju, senior accountant ck Jilse, commission agent AK Bijoy and supermarket accountant at bank Raji Anil and the mediator Kiran, according to the inspector of the circle of Irinjalakuda MJ Jijo.

The BJP and Congress have staged protests in front of the bank and its branches, which have been under the 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 made allegations against the bank even in 2019.

As there was news that the banking committee was dissolved, many depositors contacted the bank to demand repayment of their deposits. However, Joint Registrar Mohanmon P. Joseph denied the news and said the investigation was progressing.