Kochi: The BJP has raised the Cooperative Bank scam under the aegis of the CPI(M) to a new level. A report said that the saffron party has revealed that the Cooperative Bank scam is worth a whopping Rs.5000 crores. BJP National Executive Council Member, PK Krishnadas, also alleged that the CPI(M) is trying to cover up the massive scam and the party along with the government is thwarting the investigation led by Enforcement Directorate (ED).
According to the report, PK Krishnadas alleged that scams are going on in 100 cooperative banks in the state just like the scam in Karuvannur Cooperative Bank. Most of these cooperative banks are run by CPI(M).
The report also mentioned Krishnadas saying that the party has collected details of corruption from nearly 100 cooperative banks spread across the state. The amount Rs.5000 crores was reached from the data of the government’s findings and also using the party’s machinery.
Krishnadas also pointed that the data will be provided to the ED if asked, said the report.
While explaining the modus operandi of the scam, the BJP leader said that there is a pattern in the frauds taking place across the cooperative banks. One is to give out loans based on forged documents of property. As the loan is based on forged property documents, the banks cannot recover the loan amount from property.
PK Krishnadas outlined that another way is to take out the deposits of poor people from cooperative banks and invest it in another institution for higher earnings. Even the documents pledged at the cooperative banks are pledged to other banks to get loans.
Another way is to issue loans on properties by disproportionally increasing the value of the property above its original market value. In this way huge amounts are given as loans. If default happens, the banks have to bear the loss as the property attached does not have the said value.
Some cooperative banks also issue loans to known defaulters repeatedly.
According to the report, the BJP leader, also said that the communist party and the government are trying to stop the ED’s investigation into the Karuvannur Cooperative Bank scam. They want to prevent the investigation spreading to other cooperative banks, where similar scams are taking place.
He also accused the Chief Minister of misusing power to threaten the ED with the police, said the report.