Fraud at Moospet co-operative bank, loss of Rs 13 crore reported

THRISSUR: After Karuvannur, the CPM-ruled Moospet Co-operative Bank in Thrissur has reportedly incurred a loss of Rs 13 crore after board members inflated the appraised value of land. The report was submitted by the Assistant Registrar.

The fraud was uncovered during an inspection conducted by the Registrar of Co-operatives at Thrissur Moospet Co-operative Bank in Chelakottukara Road in Thrissur. Despite filing a report on the fraud at Karuvannur Bank and pointing out the irregularities of Moospet Bank, no action was taken. Eight months ago, the Assistant Registrar of Co-operatives submitted a report investigating the irregularities in the Moospet Bank.

Many loans were made outside the bank's operating limits. Board members and relatives illegally availed loans. They took loans by raising the price of land. The value for land worth Rs 20,000 per cent, was shown as Rs 1 lakh. Two or three loans were granted on the security of the same land. It was not repaid and became non-performing. The bank had a net profit of Rs 38 lakh and collapsed to a loss of Rs 13 crore, according to a report submitted to the registrar. The CPM-appointed probe team reported the irregularities but no action has been taken so far.