MALAPPURAM: The CPM controlled Parappur Rural Co-Operative Society in Malappuram has been accused of falsifying documents and embezzling money from hundreds of investors. Around Rs 8 crore was embezzled by employees and board members in the scam committed three years ago. The joint registrar of co-operative societies, Malappuram has issued a notice to the society employees and members of the governing body demanding payment of the liability of Rs 8 crore.

Meantime, the board members alleged that the fraud was committed by the employees. However, the employees came to the fore alleging that the board members swindled Rs 6 crore.

The fraud was committed on fixed deposits and daily deposits. It is alleged that they used to withdraw money without the knowledge of the investors. They also used to pledge the gold already pawned for huge amount to private moneylenders without the knowledge of the pledgers.

The co-operation department has announced a probe on the complaint. Three employees have been suspended pending further investigation into the incident. The police have registered a criminal case against them. Of these, one employee admitted that he had embezzled Rs 2 crore. However, he alleged that under the cover of this, the board members swindled around Rs 6 crore.