THIRUVANANTHAPURAM: Even as the Vigilance Bureau's flash raids at Kerala State Financial Enterprises (KSFE) branches in the state have kicked up a row, it has come out that the raids were conducted based on a report from the state intelligence.
The intelligence report was submitted to the Vigilance director on November 10. After studying the report, the Vigilance scheduled the surprise raid on November 26. However, it was postponed to the next day in view of the general strike. The name of the raid, 'Operation Bachat' was reportedly suggested by Sudesh Kumar himself.
The report pointed out serious irregularities by KSFE authorities including fund diversion by branch managers, money laundering and bogus chit funds.
The intelligence report stated that the irregularities in the KSFE would adversely affect the very existence of the financial institution. One of the major findings in the report was that many branch managers used to divert the chit funds collected from the new investors instead of depositing in treasury accounts or nationalised banks.
The branches should carry the receipts of such deposits. However, the raid revealed that many branches do not keep these receipts.
It was also pointed out that branch managers were also involved in helping the investors for starting more chits in the name of their benamidars. This has affected the transparency of the chit process and many ineligible investors are awarded chits using the influence of managers.
Similarly, the KSFE branches started many bogus chitties in favour of such benamidars and used to involve in money laundering to help black money racketeers, the report stated.
Meanwhile, the Home department sought a report from Vigilance seeking details about the raid and further actions. The government has also asked the Vigilance director ADGP Sudesh Kumar, who is on leave and in his home state, to return to Kerala immediately. Sudesh is expected to rejoin the service on Thursday after cutting short his leave period which was to be ended on December 5.
There's resentment within the Vigilance over criticisms by the LDF and Finance Minister TM Thomas Issac.