CPI(M), the ruling party in Kerala is facing immense pressure from the general public and opposition parties after a fraud has been exposed in Thrissur's Karuvannur Cooperative Bank. 100-crore bank fraud has been exposed in the bank, and interestingly, its board had members of the ruling party, headed by CPI(M) leader KK Divakaran. 

The biggest bank robbery ever in Kerala

The bank fraud has literally shocked people in Kerala, where cooperative banks play a crucial role in maintaining the financial stability of the state. With the assembly currently in session, opposition MLA Shafi Parambil has called the fraud, ''the biggest bank robbery ever happened in Kerala.'' Opposition leaders also alleged that CPI(M) leaders are trying to cover up the scam using their political influence.

Bank fraud
Karuvannur Cooperative BankFacebook

According to reports, the fraud includes Benami transactions, remortgaged properties, and faked signatures. Shockingly, several people who have never borrowed money had received foreclosure notices, which clearly indicates the fact that money was given to people without any kind of authorization. 

The scam initially came into the limelight when several people received recovery notices for amounts greater than what they had borrowed. A complaint was subsequently filed with the registrar for cooperatives and an audit was conducted. 

On July 22, TM Mukundan, a former panchayat member had died of suicide after receiving a foreclosure notice from the bank. Family members of Mukundan revealed that he had taken a loan of Rs 30 lakhs, but the bank claimed that he had taken two loans of Rs 30 lakhs and Rs 50 lakhs. 

Public panic continues

The bank authorities revealed that it has a deposit base of Rs 411 crores. However, as the scam came into the limelight, depositors are now rushing to retrieve their money. Amid Covid restrictions, depositors are rushing into the bank to get their money back, but the bank is giving out only Rs 10,000 to one customer, putting depositors in a very hard situation. 

A recent audit report had found that the kingpins of the scam are bank manager Biju Kareem, secretary TR Sunilkumar, accountant Jils CK and a member of the bank, Kiran who was a commission agent. It should be noted that Biju is a CPI(M) Porathissery local committee member, while Sunilkumar is a Karivannur local committee member. 

According to the latest updates, all the people involved in the scam are absconding, and police are rigorously searching to find the culprits. Recent reports state that the Enforcement Directorate has also initiated a probe into the scam.