Pathanamthitta: Irregularities have been found at the Kuttoor Service Cooperative Bank in Thiruvalla, which is ruled by the CPI(M). The audit report by the cooperative department points to many irregularities at the cooperative bank.
The irregularities range from providing loans by flaunting the limits of the cooperative bank to illegality in the construction of the new multi-storied building of the bank. The report also includes the irregularity in providing a loan of Rs.20 lakhs to the wife of Area Secretary of the party.
However, the cooperative bank administrative council has refuted the allegations. The internal rift in the CPI(M) unit of Thiruvalla had led to the audit report coming out in the public domain.
The audit report says that there are irregularities and violations in the construction of the new building for the bank on the side of MC Road. Due to spending lakhs of rupees for the construction work, the cooperative bank failed to repay the depositors.
According to rules, cooperative banks have a limit to provide loans, but the audit report says that such rules were flaunted and loans were provided way above the said limitations.
The audit specifically says that giving Rs.20 lakhs as loan to the wife of an Area Secretary was in violation of the rules. The address provided at the bank to avail the loan was found to be fake. Moreover, there are no clear documents on how the value of the property, kept as collateral, was determined. The report also points to the fact that the loan was sanctioned, in a hurry, on the same day that membership was given.
However, CPI(M) Area Secretary, Francis V Antony said that the loan was taken for an emergency medical treatment and that it was repaid before time. The current president of the Cooperative Bank said that reply has been provided to the Cooperative Department concerning the points raised in the audit report.
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