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Sugathan, a former governing body member of Karuvannur Bank, says the fraudsters and top leaders cheated him by placing the burden of the fraud on his head.
India's External Affairs Minister was addressing the United Nations General Assembly in New York on Tuesday.
An elderly couple lodged the complaint the other day in which they claimed the bank passed loans worth Rs 93 lakh without their knowledge, though they had availed a loan of only Rs 40 lakh.
This is the first time the State government is being denied money by any bank.
According to SBI Research, a good portion of the drawdown from savings have gone to physical assets.
The latest allotted grant will be enough to clear the whole dues till August 10.
It is understood that the administration will be forced to take procedural action.
According to his kin, Ajayaraj was under tremendous pressure and had been receiving threats from a 'cyber loan agent'. His relatives too received threats and morphed naked pictures of family members.
Family members and the couple's acquaintances said that they continue to receive the deceased woman's morphed nude pictures on WhatsApp two days after the tragic death.
The Union Finance Ministry has replied that the State's demand is against the Fiscal Responsibility Act.