THRISSUR: CPI representatives on the bank's board of directors, Sugathan and Lalithan informed the media that the management committee of Karuvannur Co-operative Bank had approved significant loans without their knowledge. These loans were later documented in the minutes of the meetings. They alleged that the CPM had deceived them and used them as scapegoats to protect senior CPM leaders.

They clarified that they had not authorized any substantial loans and had not even been aware of loans exceeding five lakhs. These loans were approved secretly, and the minutes were signed solely by the President. Bank Secretary Sunil Kumar and Biju Karim were privy to all the details. When they attempted to report the fraud, the bank president ignored their complaints.

As the bank failed to repay legitimate loans and deposits, it faced a bankruptcy crisis. Subsequent investigations revealed that loans had been granted without proper collateral. They mentioned that the seriousness of the situation became evident to bank employees when they received the investigation and audit reports. Among the board members, three were CPI representatives, and they have also received a revenue recovery notice amounting to Rs 8.5 crore.

The CPM is conducting further investigations into the transactions of Velappaya Satheesan, the primary accused in the ED-registered Karuvannur fraud case. There is information suggesting the involvement of other leaders. Additional leaders are under scrutiny following the revelation of Satheesan's illicit investments in Ayyanthol Cooperative Bank. Satheesan had deposited 12 lakh rupees in this bank 24 times a day as an attempt to avoid detection. After the Karuvannur fraud was exposed, he withdrew his crores-worth investments.

Satheesan has been investing crores in this bank since 2013. He held two accounts in his name and two in the name of his wife and son. ED has frozen all four accounts. It's worth noting that the wife of a CPM district leader and the daughter of a state leader are reported to be employees of this bank.