Kerala co-operative bank faces Rs 100 crore loan scam charges

THRISSUR: An alleged Rs 100 crore loan scam has been reported in a cooperative bank in this central Kerala district, following which the police have registered a case against six bank officials and launched an investigation.

The allegations of the fraud were raised against Karavannur co-operative bank, controlled by the ruling CPI(M), at Irinjalakuda here.

After several people including local customers raised apprehensions about the bank'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, sources here said.

Based on the audit findings, the president of the bank lodged a complaint with the police, sources added.

A senior police official said as per the complaint, cheating to the tune of nearly Rs 100 crore had been found.

"It is considered to be a fraud which had been continuing for the last several years. So, we can find out the exact amount of fraud only after a detailed probe and examination of the loan documents," the officer told PTI.

The case was registered against six bank officials, including the secretary of the bank, who were already placed under suspension over the allegations, he said.

Several sections of IPC including 420 (cheating), 471 (using a forged document as genuine) and 120 B (criminal conspiracy) were slapped against them.

He said the case would be handed over to the Crime Branch for further investigation as cheating to the tune of several crores of rupees were suspected in the scam.

Following the allegations, the 13-member committee of the CPI(M)-ruled bank was disbanded.