Plea in HC for CBI, ED probe into Karavannur co-operative bank loan scam

A former accountant of the CPI(M)-controlledKaravannurco-operativebank, which is at the centre of amulti-crore loan scam, has moved the Kerala High Court seeking handing over of the investigation in the case to CBI or the Enforcement Directorate.

The petitioner, represented by advocate Sreekumar Chelur, has alleged that a substantial amount of money of the bank was used for various illegal activities and it would not be possible for Kerala Police to unearth the entire conspiracy as the bank is run by a committee which owes allegiance to the ruling party.

The petitioner, Suresh M V, in his plea has claimed that only a specialised agency which deals with financial fraud can carry out a proper investigation.

He has also claimed that his only objective is to unearth how the fraud took place, who all are behind it, where is the siphoned off money now and how to prevent such incidents in future.

The petitioner is no longer in service in the bank after he faced departmental action for raising complaints regarding alleged financial irregularities there.

He has alleged that roughly Rs 450 crore of deposits of the common folk has been siphoned off by illegal means.

Last week, Kerala Minister for Cooperation and Registration V N Vasavan has said there was no need for a probe by CBI or any other central agency into the multi-crore loan scam reported at the cooperative bankin Thrissur as competent officers of his department and the police were investigating the matter.

The minister had said that a probe by a central agency was only required if the officers here are unable to carry out the investigation properly which was not the case.

He also said that the opposition would always make such demands for a probe by CBI or any other agency, and that cannot be a reason to hand over the investigation.

An alleged loan scam, to the tune of over Rs 100 crore, has been reported inKaravannur Co-Operativebankfollowing which police has registered a case against sixbankofficials and launched investigation.

After several people including local customers raised apprehensions about thebank's functioning, an audit had been 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 accounts.

The case was registered against thebankofficials, including the secretary of thebank, who were already placed under suspension over the allegations.

Kerala BJP president K Surendran had recently alleged that the scam was one of the biggestbankfrauds ever reported in the state and the government was conducting a Crime Branch investigation out of fear that the central agencies would take up the matter.

He had claimed that the ruling party had crores of black money investments in theco-operativebanks and that they had misused these institutions to utilise that illegal fund during the April 6 assembly polls.

He had also urged the Election Commission to carry out a probe into the allegations raised by the investors ofKaravannurco-operativebankthat their money had been used for the recent polls.PTI HMP BN BALA BN BALA