Thiruvananthapuram, July 25 (PTI) Kerala’s Cooperation and Registration Minister VN Vasavan said on Sunday that no central agency needed to investigate the multi-crore loan scam reported in a cooperative bank controlled by the ruling CPI (M). in Thrissur as competent officials from his department and the police investigated the case.
The minister, while addressing the media, said that an investigation by a central agency is only required if officers here are unable to conduct the investigation properly, which was not the case.
He also said that the opposition would always make such requests for an investigation by the CBI or any other agency, and that cannot be a reason to postpone the investigation.
Meanwhile, media have claimed four people were arrested by the Criminal Branch on Sunday in the case.
However, this was denied by a senior Crime Branch officer who told PTI that no arrests have been made in the case so far.
An alleged loan scam, in the amount of more than Rs 100 crore, was reported to the Karavannur Co-operative Bank, as a result of which the police registered a complaint against six bank officials and opened an investigation.
After several people, including local customers, expressed their apprehension about the operation of the bank, an audit was recently carried out there in which the accusations were said to be true.
During the inspection, it was also found that loans were sanctioned on the property pledged by local clients without their knowledge and the loan amount was credited several times to the selected accounts.
The case was registered against bank officials, including the bank secretary, who have already been suspended due to the allegations.
Kerala BJP President K Surendran had recently alleged that the scam was one of the biggest bank frauds ever reported in the state and that the government was investigating the Crime Branch for fear that central agencies might backfire. seize the case.
He claimed that the ruling party had millions of black money investments in cooperative banks and that they abused these institutions to use this illegal fund in the April 6 elections.
He also urged the Election Commission to investigate allegations by investors in the Karavannur cooperative bank that their money was used for the recent polls. PTI HMP ROH ROH