Bank loan

Key accused in Rs 100 crore Karuvannur bank loan fraud lands in police net


Through Express news service

THRISSUR: The Criminal Branch team investigating the Rs 100 crore loan scam to the Karuvannur Cooperative Service Bank has arrested accused Pallath Kiran of Kollengode in Palakkad. It is alleged that Kiran, 31, from Perinjanam in Thrissur, received a loan of around Rs 22 crore through Benami accounts although he was not even a member of the cooperative.

The investigation carried out by the cooperative department and the criminal branch had discovered that a loan worth Rs 50 lakh had been sanctioned in Kiran’s name. Apart from that, loans sanctioned by several people were also diverted to his personal account via an account of 45 benami, the investigation team said.

The investigation also found that the bank authorized loans to Kiran’s business partners and family members without any collateral or pledge documents. When the cooperative department’s investigation asked for an explanation, he did not take responsibility for the benami accounts or loans passed under benami names. case. While other defendants were arrested by police, there was a rumor that Kiran may have escaped the country.

The police discovered that Kiran was in hiding in Delhi. Two days ago, they found him in Palakkad. Police sources said Kiran was the prime contractor behind the embezzlement of the loan funds. The discovery of a scam at the more than 100-year-old bank had put the PMO in the district in trouble with local leaders facing disciplinary action.