In yet another incident that shows CPM’s financial mishandling of cooperative sectors, a 100 crore rupee fraud has been found in a cooperative bank controlled by communists. The fraud happened at Karuvannur Service Cooperative bank from a period of 2014 to 2020. The 12 member bank governing committee of CPM members were disbanded after the details about the scam came out to the public domain. BJP has lodged complaints with ED and IT departments.
As per the reports, 23 crore rupees was found in an account operated by one Kiran. Many of the common people who took loans on their property, even after paying the loan amount, received an eviction notice. When they filed a complaint they came to know that one more loan was taken from their property and the money they were paying was going to the shadow account. About 46 people encountered the same problem.
Cooperative societies and banks form the backbone of CPM in Kerala, hence a lot of illegal activities happen here. After the Union government announced the decision of creating a news ministry for cooperation, CPM leaders were quick to criticise the Union government due to the fear that any regulation on this sector could challenge the party’s existence.