Kerala: secretary of CPM-led Karuvannur cooperative bank, staff siphon over Rs 100 crore | Kochi News
Karuvannur Cooperative Service Bank was one of the first state banks in the cooperative sector.
THRISSUR: Huge loan fraud has been detected at CPM-run Karuvannur cooperative service bank near Irinjalakuda, sparking embarrassment for the party leading a nationwide campaign against the alleged intrusion by the government of the Union in the cooperative sector.
Preliminary estimates indicate that the fraudsters, who allegedly include the bank secretary and other staff, embezzled over Rs 100 crore by using the title deeds submitted by loan seekers as collateral. Irinjalakuda Circle Inspector Jijo said police registered a case based on the complaint filed by current bank chairman KK Divakaran and secretary in charge Sreekala E S.
The bank suspended secretary TR Sunilkumar, manager Biju M Kareem and accountant Jils C K. Lawsuits were brought against three others, Kiran, who was a commission agent, Reji, an accountant at the supermarket, and Bijoy, who was also a dealer. products like mattresses and furniture. According to the complaint, the fraud had taken place at several levels. At one level, fraudsters have taken out multiple loans using collateral submitted by an applicant, who only gets a limited amount. Reports indicate that customers who applied for smaller loans were found to have a loan burden of several million rupees later, bank sources said.
On another level, loans have been used to overstate the value of the property given as collateral. Some staff used loan amounts greater than those permitted by applicable law. One of the staff was found to have received a loan of around Rs 25 crore while the law states that staff members can only receive loans below Rs 50 lakh as a loan housing and employee overdraft.
The laws also prescribe that cooperative banks can only disburse loans up to 70% of the deposits they have. But in the case of this bank, there have been occasions when loans of around 110% of deposits have been disbursed.
It is interesting to note that the Karuvannur Cooperative Service Bank has been recognized as one of the best state banks in this sector. His NPA level was also very low and he was making good profits on paper until 2018. But the situation changed after the demonetization and the floods, when repayments slowed. Evidence of fraud began to appear during the checks carried out in this context. The audits carried out later revealed the larger dimensions of fraud. Customers who had received the first clues of the fraud had started withdrawing their deposits, and the bank’s deposits had risen from Rs 410 crore to Rs 310 crore in a year and a half, banking sources said. The co-registrar of the state’s Cooperative Department, Mohan Mon, said steps have been taken to recover the money lost by auctioning off the pledged properties. Asked about reports that the bank’s board of directors has been dissolved, he said: “There are certain procedures to be followed in taking such steps.”
The BJP was quick to seize the opportunity to take on the CPM. Party Secretary of State A Nagesh said the complaints would be sent to the Union’s Home Affairs Minister Amit Shah, who is also in charge of the new Cooperation Ministry. The BJP also sent complaints to the Income Tax Service and the Enforcement Directorate regarding the fraud.
District Youth Congress President OJ Janeesh has alleged that the fraud could not have happened without the connivance of the PMO leadership and that tough action must be taken against everyone involved.