Thrissur: The Cooperative Department is under fire for its reluctance to take decisive action against those who have extorted money from common people through fraudulent activities in cooperative banks. Despite widespread public outcry, the department appears hesitant to pursue measures, including confiscation, to recover compensation from the perpetrators. It has become customary for the department to halt proceedings once defendants secure a court stay against confiscation orders.
Notably, a decade ago during the Congress ruling committee, a massive fraud amounting to Rs 42 crore was reported in the Puthoor Cooperative Bank. Subsequently, despite a change in government to CPI(M), victims have not received compensation or refunds. Three years ago, the Cooperative Department issued an order to recover Rs 2.54 crore from 20 individuals, including the former bank president, yet no action has been taken since.
Over Rs 70 crore, including interest, remains unpaid to over 5,000 investors. Despite promises from the CPI(M) government to expedite the repayment process, investors express disappointment as no substantial steps have been taken. Notably, the Cooperative Department has yet to conclude the recovery process for the Karuvannur cooperative bank, the site of Kerala’s largest cooperative scam. Despite registering a case in 2019, regarding fraud in this bank, no substantial progress has been made.
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