THIRUVANANTHAPURAM: Six days after the arrest of 14 people in connection with the Thiruvananthapuram corporation subsidy loan scam, the special investigation unit of the Vigilance and Anti-Corruption Bureau is gathering evidence, with officials verifying financial transactions, digital records and correspondence between corporation departments and cooperative banks.
Beneficiary lists, council meeting minutes, and scheme sanction orders are also under scrutiny. Statements from corporation officials, bank employees and intended beneficiaries are expected to be recorded soon. The arrests were made as part of two separate cases involving financial irregularities in the distribution of subsidy loans aimed at promoting women entrepreneurs from marginalised communities. In the 2020-21 fiscal, `1.26 crore was earmarked for women from SC/ST communities. The following year, `1.14 crore was allotted for women from the BPL category under a similar entrepreneurship promotion scheme.
However, investigations revealed widespread misuse of the funds. Several people who were not listed as approved beneficiaries by the corporation council allegedly received loans, violating subsidy norms and scheme guidelines. Fake documentation was used and records were reportedly tampered with or removed from corporation offices.
One of the major findings was the use of a fictitious firm named Ashwathi Suppliers, allegedly floated by one of the arrested middlewomen, to divert funds through accounts at the Pattom service cooperative bank. From there, the money was transferred to other middlemen.
The 14 people arrested include two former industrial extension officers of the corporation, the bank manager and multiple intermediaries suspected of manipulating records and facilitating the misappropriation of funds. The case began with a complaint by the mayor over the suspected misuse of SC/ST funds. It was initially registered at Museum police station and later transferred to the Vigilance bureau.