KOCHI: Cooperative Minister VN Vasavan said that people who deposited in Karuvannur Cooperative Bank will not lose a single rupee. He stated that steps have been taken to get the money back to the depositors as soon as possible and the deposits up to fifty thousand will be paid in full. The minister also informed that action is being taken to recover the money from those responsible. He responded in the press conference that the ED investigation is politically motivated.

While being the manager of Karuvannur Service Co-operative Bank, MV Suresh lodged a complaint with the Thrissur District Joint Co-operative Registrar on 16 January 2019. The letter was about suspected irregularities in the sanctioning of loans in the bank by members of the governing body, middlemen and some people outside the purview of the bank. On the 28th, he also directed the Assistant Registrar to conduct an inquiry in this regard. A three-month-long inquiry was conducted. However, the scope of the Karuvannur loan scam, in which a total fraud of more than five hundred crore rupees had been committed, which was revealed later, did not come to light in that investigation.

After evaluating the inquiry report, the district joint registrar noted: Inquiry not satisfactory. The government then ordered an inquiry under Section 65 of the Co-operative Act. Thus, a nine-member team headed by Joint Secretary PK Gopakumar was assigned to investigate. Shocking irregularities that have been taking place in Karuvannur Bank since 2011 came to light, during the two-year-long investigation.

After that, Sreekala, who was in charge of Karuvannur Bank Secretary, lodged a complaint with the Irinjalakuda Police on 14 July 2021 demanding an investigation into the loan irregularities in the bank. The accused in the case registered by the police that day are former bank secretary TR Sunilkumar, branch manager KM Biju, senior accountant CK Jills, member of the governing body PP Kiran, commission agent Bijoy and supermarket accountant Regi Anil.