Karuvannur bank scam: ED raids houses of five accused in Kerala

It was in 2019 that the Rs 100 crore fraud at the Karuvannur bank, which is controlled by a board whose members are local CPI(M) functionaries, came to light.
Karuvannur bank
Karuvannur bank
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The Enforcement Directorate of the Kochi zonal office on Wednesday, August 10, began carrying out simultaneous raids at the residences of five accused in the Rs 100 crore fraud at the Thrissur-based Karuvannur Cooperative Bank. Incidentally, four of the five accused whose residences were being raided are out on bail. The ED officials involved in the raids were being guarded by armed CISF (Central Industrial Security Force) personnel. The Karuvannur Cooperative Bank fraud in Thrissur district came to light in 2019, and received media attention in July last year following the suicide of a man allegedly after receiving a notice from the bank for recovering money.

The scam received attention again in July this year, following the death of a 70-year-old depositor named Philomena. Her family said they were unable to withdraw money deposited in the bank for her medical treatment after she was hospitalised in June. The Kerala High Court last week directed the Karuvannur bank to stop all payments barring emergency ones, and asked the Pinarayi Vijayan government to prepare a roadmap aimed at paying back the depositors.

The bank informed the court that they have only Rs 60 lakh in cash at present, but they have assets which can be sold to pay the depositors. The court also pointed out that of the total deposits of Rs 284 crore, a sum of Rs 142 crore has matured. Meanwhile, the Congress-led opposition has demanded a CBI probe into the bank fraud.

It was in 2019 that the Rs 100 crore fraud at the Karuvannur bank, which is controlled by a board whose members are local CPI(M) functionaries, came to light. The fraud involved fake signatures, benami transactions and remortgaged properties. Four CPI(M) leaders who were allegedly involved in the fraud were expelled from the party after the scam came to light and disciplinary action was taken against others.

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