A huge loan fraud of over Rs1 billion has surfaced at a cooperative bank in Kerala. The state’s Karavannur Cooperative Bank in Thrissur district is being probed by the police as the fraud came to light after the local cooperative officials conducted an inspection there, following complaints. It was found that loan money given on various property documents was credited to a few accounts, while some had no clue that loans were being sanctioned based on their property documents. The bank is being controlled by the Communist Party of India (Marxist), which leads the Left Front Government in Kerala. The bank has a 13-member committee and that has been disbanded after the cooperative inspectors found out the loan fiasco and 6 bank officials have been suspended. The bank has a deposit base of over Rs4.5 billion and it has given as much as Rs 4 billion in loans and the figure of Rs1 billion mentioned is low, according to the police complaint.
