The kERALA government ignored the instructions of the party commission of inquiry and the co-operation department in the Karuvannur co-operative bank scam as it would affect the elections.
The reports came before the government during the preparations for the local body elections. The report submitted by the Joint Registrar of Co-operatives also recommended a vigilance inquiry.
The report of the two-member committee appointed to look into the allegations of irregularities in the bank also said that there was massive corruption in the bank.
CPM is ruling the bank since forty years. The party considered that the news would tarnish the party’s image. Though the party was adamant that strict action be taken, it was hoarding the report for fear of a setback in the forthcoming local body elections.
It was assessed that if action is taken, it will affect the vote bank of a large section of Karuvannur Bank. It was opined that if there is any action against the bank fraud, action will have to be taken against the local and area committees and this will be reflected in the elections.
Karuvannur Co-operative Bank was a bank that made a huge contribution to the election and vehicles for the campaign.