Yet another co-op bank run by CPM filched funds: Probe

Vadakkanchery (Palakkad): Yet another cooperative bank run by CPM is under scrutiny for misappropriation of funds. An inquiry revealed that Rs 5.76 crore was embezzled from the  Kannambra Service Cooperative Bank which is run buy a governing council comprising CPM members.

The State Cooperative Department has directed the bank’s secretary, staff and administrative committee members to collectively pay back the misappropriated funds.

In an inquiry conducted after allegations of large-scale financial misappropriation, Special Grade Inspector reported that Rs 5,76,57,751 must be levied from those involved in the fraudulence.

More than Rs 5 crore amassed as deposits from the public without permission from the Cooperative Department, was diverted for building construction. The report also mentions that the Uralungal Labour Contract Cooperative Society (ULCCS) was given an advance of Rs 1 crore to carry out the construction activities.

Changes and amendments were made to the building plan and the estimate, which was approved by the administrative committee every now and then. It was also found that the building was constructed without approval from the Cooperative Department.

The State Ministry has directed to levy Rs 5,06,44930 from the bank’s former secretary K Surendran who diverted the funds without adhering to the rules. The rest of the misappropriated funds must be levied from the former and present administrative council members, considering their period in the administrative committee.


Other findings of the inquiry


• Fake quotations were made to mislead the administrative committee.

• Fixed deposits were diverted for other purposes

• There was a loss in the conduct of Onam Fair. The cash collected was not deposited in the bank and was held in hand.

• A loss of Rs 24,94,894 was incurred by running a farmers’ welfare centre. Rs 1,36,573 loss was reported for the construction of a compound wall for the centre.


The State Cooperative Minister’s office informed that it would recommend initiating stringent action based on the report.

The bank authorities however maintained that the building not getting the administrative approval is the only problem and that they possess all other documents.


Graft allegations in rice park project also


A graft of Rs 2.5 crore was alleged earlier in buying land for the Kannambra Rice Park of the Palakad Pravasi Co Operative Society (Papcos), which was started under the leadership of CPM.

Later, the party conducted an inquiry and R Surendran, the bank secretary and also PAPCOS honorary secretary, was ousted from his post.

C K Chamunni, who is Surendran’s relative, was demoted from the CPM District Secretariat to the District Committee. However, Chamunni continues to be the vice president of the Palakkad District Panchayath ruled by the CPM.

Of late scams were reported from several CPM-run cooperative banks across Kerala.

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