THIRUVANANTHAPURAM: Cooperation Minister Kadakampally Surendran on Thursday said the state government would form a special team led by the Registrar of Cooperative Societies and the director of Co-operative Audit to look into the irregularities found in the functioning of the Thiruvananthapuram and Thrissur district cooperative banks.
Among the 14 district cooperative banks in the state, only Thiruvananthapuram is operating at a loss.
The mismanagement and irregularities in disbursal of loans by the Thiruvananthapuram district cooperative bank during the tenure of the previous governing body pushed the bank to a tight spot.
The bank has also noticed that irregularities in sanctioning loans to the primary cooperative societies during the time of the last governing body contributed to the accumulation of NPAs to the tune of `254 crore.
Many of these societies were makeshift arrangements and personal loans disbursed during this tenure also contributed to the accumulation of NPAs to the tune of `500 crore.Only an impartial investigation into such irregularities can bring the depth of the fraud to light, the minister said.