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Kerala: ED raids co-operative bank over misappropriation of funds worth ₹300 cr
A team of ED officials escorted by CRPF personnel conducted the raid at several places and seized many documents
The Enforcement Directorate (ED) on Wednesday raided CPI(M)-controlled Karuvannur co-operative bank in Thrissur and houses of its officials in connection with ₹300 crore worth misappropriation of funds that crippled the bank.
A team of ED officials escorted by CRPF personnel conducted the raid at several places and seized many documents.
A senior official of the defunct bank refused to comment on the raids.
The alleged fraud came to light last year after it failed to repay interest and deposits of hundreds of investors. Though the state crime branch arrested six persons in connection with the case, later they secured bail.
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Two weeks ago, a woman depositor who had a fixed deposit of ₹30 lakh died after her family failed to withdraw money to get her treated.
Later, family members staged a protest outside the bank with her body and it was cremated only after getting an assurance from the district administration that their dues will be settled at the earliest.
Amid huge uproar, the issue gathered steam and led the bank officials to return the money last week.
Last week, the high court had directed the bank to stop all payments, barring emergency ones, and asked the government to prepare a contingency plan to return the depositors money.
Though irregularities were pegged at ₹300 crore, the state co-operation minister VN Vasavan said the loss was estimated at ₹150 crore.
The opposition Congress and BJP have sought a central agency probe alleging that state police were shielding leaders of the party who were directly involved in the fraud.
During the course of investigations, it was found that some bank officials siphoned off money by misusing title deeds submitted by loan applicants. Police did arrest six employees, but they were released on bail later.
The affected depositors said the main culprits behind this are yet to be arrested.
The co-operation ministry announced a bailout package but investors said the wait continues for their money.
