THRISSUR: The cooperation department joint registrar on Thursday dissolved the director board of the Karuvannur Cooperative Society Bank that is allegedly involved in a Rs 300-crore scam. Probing the allegations, Joint Registrar Mohan Mon P Joseph found them true and submitted a report to the registrar to that effect.
The report also indicated the actual fraud comes to around Rs 300 crore, rather than Rs 100 crore mentioned initially, under which many loans were given. The committee headed by K K Divakaran was dismissed and Mukundapuram Assistant Registrar M C Ajith appointed the administrator.
‘Will take action against those involved in fraud’
It is also alleged that the bank sanctioned new loans by pledging the documents of certain people without their consent. In a Rs 100-crore loan taken under the name of 46 people, the whole amount was transferred to one account, held by Kiran. The bank -- established in 1921 -- has had CPM-led administrative committees for 40 years. Four bank staffers, including the secretary, were suspended when the Irinjalakkuda police registered a case.
The joint registrar told TNIE that a three-member committee was appointed on July 6 to probe the fraudulent transactions in the bank. “Once they submit the report to the state government, legal action will be taken against those who are involved in it. The financial loss suffered by the bank will be recovered from the guilty. As far as the depositors’ funds are concerned, necessary steps will be taken after discussions with Kerala Bank,” he said.
As per the order, the administrator will continue for the next six months and a new director board has to be elected within that period.