THIRUVANANTHAPURAM: The state cooperative department has launched a probe into the alleged fund diversion and other malpractices in the Thiruvananthapuram-based BSNL Engineers Cooperative Society. The society engaged in banking activities has defaulted repayment and interest payment on long-term and short-term deposits. Established in 1987, the society received deposits worth crores of rupees as it offered high-interest rates.
The Vanchiyoor police have received over 50 cheating complaints from 550 people against the society. Together their claims are worth Rs 81 crore.
The police have convened a meeting of investors and office-bearers on December 27 and would take a decision on registering a case after the meeting. The members of the society had submitted mass petitions to the chief minister, cooperation minister and state police chief seeking a probe alleging disrupted functioning for the past one year.
Applications for withdrawal of deposits have been dishonoured since then. There was also default on interest payment since December 9. The members allege that the society’s office-bearers siphoned off funds through fake loans.