100cr loan fraud discovered at Thrissur Karuvannur Co-operative Bank
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Thiruvananthapuram: An inspection conducted by local Cooperative officials in Kerala's Thrissur district has discovered a massive loan fraud of over Rs 100 crore at the Karavanoor Cooperative Bank.
The Kerala police have begun a probe into the alleged loan fraud to the tune of over Rs 100 crore following an inspection that was carried out after locals gave a complaint that things are not right in the bank.
Following the inspection by the Cooperative Inspectors, the complaint was found to be true and it surfaced that loan money given on various property documents was credited to a few accounts, while some had no clue that loans were being sanctioned based on their property documents.
As per reports, the loan amount was credited to a select few accounts multiple times using the same property documents as the mortgage. The property owners were oblivious to the mounting mortgage on their property.
The scam came to light when the property owners received notices for defaulting loan payments.
The loan amounts of 46 loans were credited to one bank account.
Charges under sections 420 (cheating), 465 (forgery), 468 (forgery for cheating), 471 (using as genuine a forged document) and 120B (criminal conspiracy) of IPC have been slapped on the accused.
Following the inspection, the Cooperative department officials registered a complaint with the local police at Trissur, which has registered a complaint and charges like cheating have been registered against the bank officials.
The CPI-M controlled bank has a 13-member committee and that has been disbanded after the Cooperative Inspectors found out about the loan fiasco and six bank officials have also been suspended.
Speaking to the media, the complainant in the case said that he had last year brought this to the notice of higher-ups.
"The bank has a deposit base of over Rs 450 crore and of this Rs, 400 crores have been given out as loans and the figure of Rs 100 crore which has now come out is so low, while the actual fraud can be more," said the complainant.