KOZHIKODE: Being controlled by political leadership, the cooperative sector in the state has been rocked repeatedly by financial irregularities running into crores of rupees. In the last six years, a total 399 cooperative banks and societies across the state have reported financial fraud betraying the public trust in the sector.
Thrissur district, where the massive loan fraud was reported in Karuvannur Cooperative Bank recently, topped the list with 66 cooperative institutions being allegedly involved in financial malpractices in the past six years. In Malappuram district, fraudulent activities were reported in 55 institutions, followed by Thiruvanthapuram (49). Palakkad district remained at the bottom with only three institutions reporting financial fraud cases.
Cooperation Minister V N Vasavan revealed the data in reply to a query raised by Kasaragod MLA N A Nellikkunnu in the assembly on Monday. The fraud included sanctioning loans without following government norms, sanctioning loans against receipts of fake fixed deposits, illegal appointment of staff, malpractice in calculating interest on deposits, releasing loan amounts without security, gold loan scam, mismatch in the stock kept in Neethi medical stores, irregularities in auctioning of bank properties, looting money, sanctioning loans against property beyond the bank's limit, mismanagement of funds allotted by the government and illegally allowing reduction in loan repayment.
The minister further said cases have been registered under Sections 65 and 66 of the Kerala Cooperative Act in all cases and the probe is on. In addition, the police probe is also undergoing in some cases registered under IPC sections. Efforts are also on to collect the money from the offenders to compensate the losses suffered by the institutions due to the fraud, the minister added.
To yet another question, the minister said 164 cooperative institutions across the state have failed to refund deposits to customers even after their maturity period. To address the concerns of depositors, the government has ensured a security amount of Rs 2 lakh for each deposit under the Kerala Cooperative Deposit Guarantee Scheme. Further, the government is taking steps to hike the amount to Rs 5 lakh, the minister added.
District-wise data of coop institutions rocked by financial fraud
Thiruvananthapuram: 49
Kollam: 42
Pathanamthitta: 9
Alappuzha: 11
Kottayam: 46
Idukki: 14
Ernakulam: 33
Thrissur: 66
Palakkad: 3
Malappuram: 55
Kozhikode: 11
Wayanad: 18
Kannur: 24
Kasaragod: 18