Karuvannur Rs 300 crore fraud: Charges true, co-op dept dissolves financial institution director board

By Express News Service
THRISSUR: The cooperation division joint registrar on Thursday dissolved the director board of the Karuvannur Cooperative Society Bank that’s allegedly concerned in a Rs 300-crore rip-off. Probing the allegations, Joint Registrar Mohan Mon P Joseph discovered them true and submitted a report back to the registrar to that impact.

The report additionally indicated the precise fraud involves round Rs 300 crore, moderately than Rs 100 crore talked about initially, beneath which many loans got. The committee headed by Ok Ok Divakaran was dismissed and Mukundapuram Assistant Registrar M C Ajith appointed the administrator.

‘Will take action against those involved in fraud’

It can be alleged that the financial institution sanctioned new loans by pledging the paperwork of sure individuals with out their consent. In a Rs 100-crore mortgage taken beneath the title of 46 individuals, the entire quantity was transferred to 1 account, held by Kiran. The financial institution — established in 1921 — has had CPM-led administrative committees for 40 years. Four financial institution staffers, together with the secretary, have been suspended when the Irinjalakkuda police registered a case.

The joint registrar informed TNIE {that a} three-member committee was appointed on July 6 to probe the fraudulent transactions within the financial institution. “Once they submit the report to the state government, legal action will be taken against those who are involved in it. The financial loss suffered by the bank will be recovered from the guilty. As far as the depositors’ funds are concerned, necessary steps will be taken after discussions with Kerala Bank,” he stated.

As per the order, the administrator will proceed for the following six months and a brand new director board needs to be elected inside that interval.