Karuvannur fraud investigation stalled; depositors yet to receive money; bank not paying full amount scared of losing deposit

THRISSUR: The ways to return the money of depositors in the Karuvannur Cooperative Bank, where crores of rupees were embezzled, have almost reached a dead end.

One option was to give the bank's fixed depositors the opportunity to buy the assets that the bank had seized and were in arrears. Those who had fixed deposits but could not get their money back could buy these assets using their deposit amount. Fixed depositors came forward to utilise this option, ready to take over the arrears of even relatives and acquaintances. Many were relieved that they could recover their uncertain deposits in this way. However, the bank took the position that it would only pay a maximum of 50 percent of the fixed deposit amount for such a matter. The remaining 50 percent would have to be found by the depositors themselves.

Those who have made fixed deposits in the bank and are in financial crisis cannot find the remaining 50 percent. If the demand of the depositors to pay the entire amount is granted, the bank's deposit will decrease. The income to be received through the seizure of property and arrears will also decrease.

Crores to be paid

The Irinjalakuda police registered a case in the Karuvannur fraud on July 14, 2021. While more than Rs 125 crore was recovered from the borrowers, 135 crore was returned to the depositors. Those who had deposited Rs 273 crore also regularly approached the bank demanding their money. Although there is Rs 382 crore to be received, this amount has not been received. It is said that influential people have taken loans in the names of their children and others using political influence and have not repaid them. The bank is also unwilling to take action against them. The bank is struggling to return the share of the deposit to those who come for treatment, education, marriage etc.

The ED's investigation into the Karuvannur scam has also cooled down. Although it was said that a charge sheet would be filed involving some prominent people, nothing has happened. Former minister AC Moideen, K Radhakrishnan, and MM Varghese, who were also CPM district secretaries, were questioned and released.