Karuvannur co-op bank scam: Kerala HC seeks auditor report

The Kerala High Court on Tuesday asked the Karuvannur Co-operative Bank to submit the auditor report before it and posted the case relating to the scam in the bank for further hearing on August 10.Justice T R Ravi, while considering the pleas filed against the CPIM-controlled co-operative bank where a crores-worth loan scam was reported, directed the state government to submit a plan within two weeks.

The Kerala High Court on Tuesday asked the Karuvannur Co-operative Bank to submit the auditor report before it and posted the case relating to the scam in the bank for further hearing on August 10.

Justice T R Ravi, while considering the pleas filed against the CPI(M)-controlled co-operative bank where a crores-worth loan scam was reported, directed the state government to submit a plan within two weeks. The court also directed to post related pleas against the bank together. Meanwhile, the bank told the court that it has stopped giving loans and funds can be released for important requirements. The court said it will consider whether an independent audit is required or not. The bank informed the court that it has Rs 60 lakh with it. It also said that the funds can be cleared as it has assets that can be sold. Opposition parties and locals have been demanding handing over the investigation of the Rs 300 crore Karuvannur Cooperative bank scam to the CBI, alleging that there was not much progress in the ongoing probe by the state agencies.

The loan scam was reported in the bank, located in Thrissur district, in July 2021, following which a case was registered against six bank officials and an inquiry launched.

After several people including local customers raised apprehensions about the bank's functioning, an audit was conducted there recently, in which the charges were reportedly found to be true.

During the inspection, it was also found that loans were sanctioned on the property pledged by local customers without their knowledge and the loan amount was credited multiple times to the selected account. Following the allegations, the 13-member committee of the Marxist party-controlled bank was disbanded.