The CPI-M leadership led by the Chief Minister of Kerala is trying hard to contain the damage done to the image of the government due to the massive scam unfolding in Karuvannur Service Cooperative Bank.
The revival package being proposed, is also being pooh poohed by opposition parties.
It is being said that disturbed by the involvement of his senior colleagues in the scam, the CM Pinarayi Vijayan thought of investing money in the Karuvannur Service Cooperative Bank through the recently formed Kerala Bank, which was formed by merging the DCCBs in the state. Kerala Bank operates under NABARD.
NABARD is believed to have said “No” to the proposal from the Kerala Bank, citing RBI’s take on the issue. Since Kerala Bank operates under RBI, which disallows any bail out of troubled banks due to mismanagement, the CM is at a loss as to what it could do. As a second thought, the top CPM leadership has thought of asking profit making PACS to deposit funds in the Karuvannur Service Cooperative Bank.
But Opposition leaders fear that it may lead to collapse of the co-op network in the state as even those co-op entities which are doing fine so far, would be in trouble in the course of time.
They argue that instead of penalizing the influential culprits who have ensured total collapse of Karuvannur Service Cooperative Bank, the govt is trying to punish those PACS which are doing fine so far.
Meanwhile, Suresh Gopi, Malayalam matinee idol, BJP leader and former MP (RS), carried out a 18 kilometre march from Karuvannur to Thrichur city, on October 2, demanding justice to the investors who lost their money. Earlier, Depositors in Thiruvananthapuram, a group of investors staged a protest in front of Congress leader and former Health Minister V.S. Sivakumar’s residence, accusing him of having links with those running the society.
The matter relates to a fraud of more than Rs 100 crore in Karuvannur Service Cooperative Bank, in which the names of several top leaders of the ruling party have figured. The name of Satheeshkumar who indulged in fraudulent withdrawal of money has come up. Besides, CPM leader A C Moideen, M K Kannan, vice-president of the Kerala State Cooperative Bank (Kerala Bank) have come up.
The Enforcement Directorate has raided the premises of former minister and CPI(M) MLA AC Moideen and some others for their involvement. The ED suspects many “benami” loans were distributed allegedly on the instructions of Moideen.