The Enforcement Directorate (ED) on Wednesday raided the Communist Party of India (Marxist) controlled Karuvannur co-operative bank in Thrissur and residences of bank officials in connection with ₹300 crore worth misappropriation of funds that crippled the bank.
A team of ED officials escorted by Central Reserve Police Force (CRPF) personnel conducted simultaneous raids at several places and seized many documents. A senior official of the defunct bank refused to comment over the raids. The fraud in the bank came to the light last year after it failed to repay interest and deposits of hundreds of investors.
Two weeks back, the bank was in news after a woman who had a fixed deposit of ₹30 lakh died as her family failed to withdraw money for her treatment. Later, the family members staged a protest outside the bank with her body and they went ahead with cremation only after getting an assurance from the district administration that their dues will be settled at the earliest.
After the issue raised enough uproar the bank officials returned the money last week, but it was too late. Last week the high court had directed the bank to stop all the payments, barring emergency ones, and asked the government to prepare a contingency plan to return the depositors’ money.
{{/usCountry}}After the issue raised enough uproar the bank officials returned the money last week, but it was too late. Last week the high court had directed the bank to stop all the payments, barring emergency ones, and asked the government to prepare a contingency plan to return the depositors’ money.
{{/usCountry}}Though irregularities were pegged at ₹300 crore, the state co-operation minister V N Vasavan, however, said the loss was estimated at ₹150 crore.
The opposition Congress and Bharatiya Janata Party have sought a central agency probe alleging that the state police were shielding political leaders directly involved in the fraud. During investigation it was also found that some bank officials had siphoned off money by misusing title deeds submitted by loan applicants.
Though police arrested six employees later they were released on bail.