KANNUR: A credit society in the cooperative sector at Karivellur near Payyannur has been found to have been allegedly defrauded of ₹2.98 crore by a racket which borrowed cash by pledging fake gold ornaments.
The alleged cheating at the Social Workers’ Co-operative Welfare Society came to light during an inspection by officials of the Department of Co-operatives on Saturday. Subsequently, the Payyannur police registered a case on a complaint from A.V. Girish, president of the society. The police said society secretary K.V. Pradeepan was absconding.
According to the complaint, the bank had granted loans worth ₹2,98,48,090 to various people in the last three years. The police said the secretary of the society was the suspected kingpin of the racket, adding that he had fled even as the inspection was on. Officials confirmed that the pledged ornaments were fake after they were examined by an appraiser.
