THRISSUR: As the number of people demanding refunds has increased, Karuvannur Co-operative Bank has landed in further trouble. In January, 423 people asked for a refund, and the number has gone up to 550 now. As directed by the High Court, the bank is now returning ten percent of the principal amount and 50 percent of the interest according to seniority with proceeds from loan repayments. As the Karuvannur rescue package has turned into a hollow promise, the hope lies in the cooperative conservation fund announced in the budget.

The move is to create a conservation fund using the reserves of cooperative banks invested in Kerala Bank. Co-operative banks are required to deposit 15 to 25 percent reserve in the state co-operative bank (Kerala Bank) depending on the rate of profit. Currently, the fund is estimated to have reached Rs 1000 crores. The move is to transfer this amount to cooperative protection fund and provide loans to distressed banks and groups. Karuvannur Bank is hoping to get money from the fund which will come into effect soon.

Notice issued for questioning
The Enforcement Directorate (ED) has issued a notice to CK Chandran, a former district secretariat member of the CPM who was suspended from the party after it was found that he has involvement in the Karuvannur scam. As per the notice, he has to appear for questioning tomorrow. The information received from the accused arrested by the crime branch has clarified Chandran's role in the scam.

Chandran's wife, who was the party sub-committee convener, was the Karuvannur bank manager. As per the other accused, Chandran was involved in the fraud along with TR Sunilkumar, who was a CPM area committee member and bank secretary. Chandran, who shifted from the district secretariat to the area committee and then to the local committee due to health reasons, was suspended a year ago.