THRISSUR: The two-year-old Karuvannur bank fraud case could be investigated by the CBI following allegations that some of the fraudsters have terrorist links. There are reports that some of the accused had smuggled the money abroad and invested it in business.

The petition filed by the bank's extension branch manager MV Suresh in the High Court seeking a CBI probe will be heard next week. Rs 227 crore fraud has been found by the Cooperative Department. The revenue recovery process, which was started to recover the loss, could not be completed after the accused obtained a stay from the High Court.

Only a nominal amount and some household items were confiscated. The court granted the stay on the basis that those facing confiscation filed an appeal with the Secretary of the Cooperative Department to hear what they had to say. Some of the accused had shifted the equipment of the house after learning about the confiscation.

It is reported that the names of some other CPM leaders have also come out in the interrogation of the Enforcement Directorate (ED). The ED report may be completed and the report can be submitted for the investigation started a year ago.

Borrowers will be questioned

Those who have borrowed a large amount from the bank may also be questioned. The ED also questioned MV Suresh, who filed the first complaint in the case, on Friday. Suresh handed over the documents related to the fraud to ED.

MV Suresh also demands action on behalf of Cooperative Department officials found to be involved in the scam. Those who were suspended were later reinstated.