KOCHI: Another cooperative bank in Ernakulam district has come under the scanner of the Vigilance and Anti-Corruption Bureau (VACB) for illegal disbursal of loans. The agency has registered a case into alleged loan manipulation at the Chendamangalam Service Cooperative Bank.
The case pertains to a loan sanctioned against agricultural land to individuals outside the bank’s territorial jurisdiction.
The accused include former president of the bank K Sivasankaran, former vice-president K G Rafale, 11 former board members, the secretary, assistant secretary, and 10 others. The bank was governed by a UDF-backed board during the period under scrutiny.
“Following a complaint, we carried out a preliminary probe into several loans sanctioned during the previous governing board’s tenure. It was found that some loans were granted to people residing outside the jurisdiction of the bank in Chendamangalam and nearby areas. Based on our findings, we decided to proceed with a detailed investigation. An FIR has now been registered against 25 individuals,” said a VACB officer.
According to the FIR, a loan amounting to Rs 2 crore was sanctioned between 2020 and 2022 against agricultural land, with its value allegedly exaggerated.
The loan was granted to a self-help group, which included 10 of the accused individuals, most of whom resided outside the bank’s permitted operational area. Later, the repayment stopped, raising red flags.
“As part of the investigation, we are scrutinising documents related to the loans issued during the tenure of the previous governing body. We have also recorded the preliminary statement of the complainant. The accused will be summoned for interrogation shortly,” the officer added.
VACB and Crime Branch have already registered multiple cases against cooperative banks and societies in the district over allegations of financial irregularities.
Investigations are already under way against the Perumbavoor Urban Cooperative Bank, Angamaly Service Cooperative Bank, and North Paravoor Service Cooperative Bank. Earlier in February, the VACB registered a case against Marampilly Service Cooperative Bank for alleged backdoor recruitment and examination malpractice.