Kerala orders probe into cooperative bank scam

THRISSUR: Close on the heels of an investigation by police Crime Branch, state cooperation department has initiated an inquiry into the reported grave irregularities in Karuvannur Cooperative Bank involving a loss of more Rs300 crores.

One of the defaulters who received revenue recovery notice ended his life on Thursday.

The tragedy happened at a time, when the state government directed all financial institutions to avoid revenue recovery processes against defaulters in view of the current COVID-19 crisis.

Registrar of Co-operative Societies, PB Nooh IAS, has convened an emergency meeting with joint registrar, assistant registrar and other officials to discuss the mater leading to the suicide.

Minister for Cooperation and Registration, VN Vasavan is also considering to hold a high level meeting to look into the mater. The minister had said that appropriate action would be taken against those responsible for the fraud.

In her reaction, government secretary for cooperation Mini Antony said that an inquiry has already been ordered.

“We don’t know why revenue recovery notice was given and what kind of loan Mukundan had taken. An inquiry is on. Let the registrar submit the inquiry report. We will look into the report and suitable action will be taken, “said Mini.

Former panchayat member PM Mukundan (63), a resident of Thelappally in the district, was upset when he received the notice and commited suicide soon ater, according to relatives. Mukundan was found dead at his house on Thursday morning.

According to critics, the revenue recovery notices were a deliberate move to suppress dissent in view of the massive fraud detected last week. Notices have been issued to many defaulters for immediate repayment of loans against government directives.

Many people received recovery notices for higher amounts than what they borrowed.

Mukundan received a recovery notice for an amount of Rs80 lakhs.

However, people close to him said that he had taken only Rs30 lakhs loan.