A co-operative bank in Kerala’s Thrissur district has reportedly embezzled Rs 100 crore in a loan scam.
A case has been registered against the Karavannur Co-operative Bank allegedly helmed by the ruling CPI(M) party members.
The fraud came to light when customers raised doubts about the bank’s shady dealings.
Customers who had repaid their loans received attachment notice from the bank as the authorities allegedly used the same title deed of their mortgaged property to grant more loans to more people.
An audit found out that the entire amount was diverted to one account.
The fraud has been going on for several years. So, the exact amount of fraud can be ascertained only after a detailed probe and examination of the loan documents, says a PTI report.
A case has been registered against six bank officials, including the secretary of the bank, who is suspended from duty.
