Action will be taken against Kandala bank administrators: Vasavan

Minister for Cooperation V.N. Vasavan has said stringent action will be taken against the administrators of the Kandala service cooperative bank near Kattakada who have been accused of misappropriating funds worth over ₹100 crore.

A departmental inquiry conducted after the Karuvannur cooperative bank scam had come to light found similar wrongdoings in some other banks including those in Karapuzha, Kumaranalloor (in Kottayam) and Kandala. The proposed amendments in the Kerala Cooperative Societies Act are aimed at preventing such malpractices, he pointed out, while replying to queries at the Assembly on Tuesday.

He said the Kandala service cooperative bank had been found responsible for various malpractices in an inquiry conducted by the Kattakada Assistant Registrar who submitted his report to the Thiruvananthapuram Joint Registrar.

While the society’s explanation into the findings was found unsatisfactory, the department has served show cause notice asking why the administration should not be dissolved. The respondents had been provided time to respond until Tuesday, but they have moved the Kerala High Court seeking relief. Nonetheless, the department has adopted steps under Section 32 of the Kerala Cooperative Societies Act, he said.

Mr. Vasavan pointed out the existing norms often provide violators an opportunity to go scot-free despite committing financial frauds. The draft amendments will likely be tabled during the next Assembly session.

Following the detection of the misappropriation of funds amounting to ₹219.33 crore in the Karuvannur service cooperative bank, the department has appointed M.S. Sherin, a senior deputy accountant general rank from the Indian Audit and Accounts Service as the Director of Cooperative Audit on deputation basis, he said.

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Printable version | Aug 10, 2022 6:39:19 pm |