After the loan scam at the Karuvannur Service Cooperative Bank, another bank fraud has come to light in Thrissur district. The fraud has been reported at the Moospet Service Cooperative Bank controlled by the Communist Party of India (Marxist).
The irregularity has been found in an audit report of the Registrar of Cooperatives. It is reported that the bank has suffered a loss of ₹13.36 crore due to the fraud.
It is reported that loans were sanctioned beyond the operating limit of the bank to board members and their relatives illegally. High loan amounts were sanctioned by exaggerating the value of the collateral. Though the Registrar’s report was submitted a few months back, no action has been taken against the bank authorities.
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As news leaked, depositors gathered in front of the bank on Tuesday for getting back their money. A long queue was seen in front of the bank. The bank has started distributing tokens to depositors for withdrawing money.
Karuvannur scam probe
Meanwhile, the Crime Branch, the Cooperation Department and the high-level committee appointed by the government have started an inquiry to find out the financial sources, deposits and business deals of the accused in the Karuvannur Service Cooperative Bank loan scam.
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It is important to trace their financial sources as the Cooperation Department is planning to attach the properties of the accused for distributing the money of the depositors.
The team is inquiring about the properties of the relatives and friends of the accused. Four private institutions registered at Irinjalakuda and a medical equipment business in Ernakulam, where the accused allegedly have shares, are under the scanner.
The department has started revenue recovery procedures against the accused in the case.
Locker unearthed
A Crime Branch team unearthed a secret locker used by the accused to store the documents of illegal deals at the Karuvannur bank. Gold coins and 29 documents were found from the locker.
According to official information, the loss to the bank due to the scam is ₹104.1 crore. But it is reported that the actual loss may be much more than that.
The irregularities in the bank's functioning from 2014 to 2020 have come to light now. But there were allegations against the bank from 2003 itself. The department is planning a more detailed investigation.
In addition to the loan scam, the audit done at the bank had found irregularities in the functioning of supermarkets at Mapranam, Karuvannur and Moorkkanad and in the conduct of chit funds.
The committee appointed by the government had been asked to submit a report in 10 days. It is also checking whether the accused have any foreign deposits. There is a move to take a loan from Kerala Bank to pay back the depositors.