Kerala’s Karuvannur cooperative bank fraud that was earlier considered 100 crores has turned to be a 1000 core scam, reports Mathrubhumi. Shocking revelations has evolved out while the investigations are underway. The construction of a resort using the bank’s name and the huge inflows of foreign investment into it are among the recent findings.
In addition, crores of rupees in loans for benami transactions and fraudulent increase in interest on deposits. One type of fraud was to take foreclosure action as soon as possible after taking out a huge loan with a small amount of land. The bank lost crores of rupees due to this.
Another tactic of the swindlers was to expropriate the land by forcing the small borrowers to repay the loan as soon as possible. The Iowa land was turned over and the swindlers made crores.
The first conclusion of the police is that at least Rs 1000 crore has been misappropriated directly and indirectly in Karuvannur Bank during the last five years. According to the report submitted by the Joint Registrar, the irregularities affected not only the bank’s deposits but also its assets.
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