Karuvannur Cooperative Bank Scam: Final report in a month as all accused remain suspended

"A team of 9 members is investigating the irregularities worth Rs.104.24 crore at Karuvannur Cooperative Bank in Thrissur" said VN Vasavan, Minister for Cooperation and Registration, Kerala. He said this while replying to a query in the assembly on August 5, Thursday. VN Vasavan further said, "The panel has been asked to submit an interim report in 10 days, and a final report is expected in a month. All the accused have been suspended."

Probe underway at Karuvannur Cooperative Bank

The Minister also added that steps are being taken to confiscate the properties of all the accused involved in the multi-crore scam. He assured that administrative committee of the bank was dissolved and the government will ensure stringent action against the accused. The accused, former manager Biju Kareem, former secretary Sunil Kumar, accountant CK Jill and commission agent Bejoy are being investigated via a crime branch probe. There are total 6 accused in this case.

What is Karuvannur Cooperative Bank scam?

Karuvannur Cooperative Bank witnessed a loan scam of Rs. 100 crore, in which multiple loans of large amounts were sanctioned against the property pledged by customers without their knowledge. It involved faked signatures, remortgaged properties, and a significant number of people receiving collection notices for amounts that they had never borrowed. Suspicion of the fraud first came to light in 2019, after which, a probe was sanctioned in August 2019 by the joint registrar of cooperation.

Oppn alleges scam

Some of the people who got notices to pay back but had never borrowed, filed police complaints. It rolled many heads towards the matter and eventually the scam was exposed. The opposition had also alleged that it had been a modus operandi for a while until it was unearthed during the pandemic. The Ministry of Cooperation and Registration had previously said that the total amount duped from the people is Rs.104.7 crore. The opposition parties had however allege that the total amount in the fraud is around Rs.300 crore, way ahead of the mark claimed by the ministry in its probe.

With inputs from ANI.

(Image: VN Vasavan - Facebook / Unsplash)