Thiruvananthapuram: An Enforcement Directorate (ED) raid was initiated at the Kattakada Kandala Cooperative Bank in Thiruvananthapuram. The operation targets alleged loan fraud involving the bank president and prominent CPI (Communist Party of India) leader, N Bhasurangan. This action is prompted by the discovery of irregularities totaling Rs 101 crore within the Kandala Bank. The ED’s raid comes in the wake of a cooperative fraud scandal that has cast a shadow over the left-wing governing body of the bank.
The ED team’s inspection commenced at around 6 a.m. in the presence of security forces. The ED is conducting searches at the houses of former bank secretaries, namely Shanthakumari and Mohana Chandran, along with collection agent Ani. When the team reached Bhasurangan’s rented house, they were unable to conduct an inspection due to the property being locked. The ED carried out a raid at Bhasurangan’s son’s restaurant located in Poojapura.
Earlier, the ED had requested a report from the cooperative registrar regarding the bank’s loan transactions and potential fraudulent activities. Following the submission of the report to the ED two weeks ago, the agency proceeded with the raid based on its contents.
A report submitted by the Cooperative Society Inspector has revealed significant irregularities within the CPI-controlled Kandala Service Cooperative Bank, implicating Bhasurangan, a CPI leader and former president of the bank. The report recommends the recovery of Rs 5.11 crore from Bhasurangan and his relatives involved in availing loans amounting to Rs 35 crore from the bank.
The report highlights that a total of Rs 34.43 crore was claimed irregularly, primarily in the form of unfair loans granted to Bhasurangan, his family members, bank employees, and their relatives. This misallocation of funds has led to losses for investors, estimated at Rs 101 crore, with a substantial portion, approximately Rs 57.24 crore, directly tied to these illicit activities.
Numerous investors have approached the court against the Kandala Services Co-operative Bank, accusing it of extorting investors’ money under benami names.
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