46 Loans to one account; 100 crore fraud in CPM controlled cooperative bank in Kerala

In a shocking report, Rs 100 crore loan scam has emerged at a CPM controlled Thrissur Karuvannur Service Co-operative Bank. The large-scale fraud has been found to have taken place between 2014 and 2020. Police have registered a case against former board members and former employees in connection with the incident, reports Mathrubhumi News.

The scam came to light after a foreclosure notice was issued to several people who had repaid their loans on time. An investigation into their complaint revealed that a large amount of loan irregularities had taken place. If a person takes a loan from a bank with collateral, another borrower uses the same basis and the amount goes to another account. It has also been found that the amount of 46 such loans went to a single account.

CPM Earlier, the Co-operative Registrar had received complaints that such frauds had taken place in the regulated bank. Subsequent audits revealed that the scale of the fraud was large. A case has been registered in the incident but the police said that a detailed investigation is needed.