THRISSUR: 300 crore fraud in RUBCO agency under Karuvannoor Cooperative Bank, alleged to have been covered up. The former manager of Karuvannoor Bank Extension Counter, MV Suresh, had lodged a complaint with the CPM district committee about the fraud that has been happening since 2003. Subsequently, the inquiry report of the two-member committee appointed did not see the light of day. A complaint filed in 2011 to AC Moideen, who was the district secretary, was also not considered. It is alleged that a real estate business was run, misappropriating crores of rupees from the sale of furniture.

Currently, some who are involved in the loan fraud case are also involved in this. Although RUBCO does not provide goods on loan, the scam was done after showing that furniture was loaned. Cooperative Department's investigation examined 10 years of irregularities in connection with the loan fraud. Irregularities in RUBCO from this period were also found. Although it was said that the total figure would be checked, it was not done. Currently, only loan fraud is being investigated. The petition filed by MV Suresh in the High Court seeking a CBI investigation will be considered after Onam. If CBI comes, RUBCO fraud may also be investigated.

Depositors struggling

Karuvannoor Bank is now governed by a three-member committee following administrator rule. The committee, which took office last month, is only gathering current information on the amount owed to depositors. Depositors are not getting money even for treatment in the meantime. According to the High Court, ten percent of the investment and fifty percent of the interest is supposed to be paid according to seniority. No new registrar has been appointed after joint registrar M Sabaridasan retired in May. Another officer has been assigned the task. The activity of collecting loans and giving them to depositors seems to have slowed down.