Home Scam/Fraud 4 arrested for loan scam in Kerala co-operative bank

4 arrested for loan scam in Kerala co-operative bank


KERALA POLICE’S economic offences wing on Sunday arrested four functionaries of a CPI(M)-controlled co-operative bank in Thrissur district, where a loan scam of at least Rs 104 crore was detected last week.

The arrested include the secretary, manager, chief accountant and a commission agent of Karuvannur Co-operative Bank.

The police also conducted searches at the premises of those arrested as well as at properties of two absconding staff of the Karuvannur-based bank, and seized documents pertaining to the illegal loans. All the accused are CPI (M) members, who were sacked from the party after the scam was unearthed on July 19.

The opposition Congress and BJP, which have targeted the ruling party in the state over the issue, have alleged that the loan scam is to the tune of Rs 300 crore. State Cooperation Minister V N Vasavan, however, said that an internal inquiry has revealed financial fraud of Rs 104.37 crore.


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