THIRUVANANTHAPURAM: The Co-operative Society Inspector has submitted a report, to recover Rs 5.11 crore from CPI leader and former bank president, Bhasurangan, following the discovery of massive irregularities in the CPI-controlled Kandala Service Co-operative Bank. The report reveals that a total of 34.43 crores were unfairly disbursed as loans to the former president, his family members, bank employees, and their relatives. In light of this blatant fraudulent activity, the report recommends that charges be brought against the members of the governing body for their involvement.
The report highlights that the massive deposit scam in the Thiruvananthapuram Kandala Service Co-operative Bank resulted from improper financial intervention of the members of the governing body. Investors suffered losses totaling 101 crores, with 57.24 crores attributed to unlawful activities alone. CPI leader Bhasurangan, who served as the bank’s president for decades, and his relatives, unlawfully acquired a loan of Rs 35 crore from the bank. The report by the cooperative society inspector pointed out these illicit activities as the primary cause behind the bank’s collapse. It further notes that deposits were accepted at interest rates exceeding government-prescribed limits, funds were diverted, and investors were paid substantial interest sums as part of these activities.
The members serving on the board of directors and as secretaries are obligated to reimburse the bank for the losses resulting from their unlawful actions. This responsibility falls upon the members of the governing body and secretaries who have been in office since 2003. The report also underscores the need to pursue the harshest penalties stipulated by Kerala Co-operative Societies Act against those found guilty.
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