Karuvannur loan scam: CPM admits failure, corrective measures to be taken

CPM's Thrissur district leadership kept Karuvannur bank fraud under wraps

Thrissur: The loan scam worth crores of rupees in the CPM-controlled Karuvannur cooperative bank in Iranjalakuda is a gross failure of the district leadership, the CPM state secretariat has concluded.

Corrective measures will be taken to rectify such lapses at the party and government levels, the party secretariat decided.

The party has instructed the Cooperative department to exercise caution and ensure that similar scams do not take place in the future.

The ED had registered a case in connection with the fraud and gathered preliminary information about the scam from the police.

The police report has confirmed that a fraud of the magnitude of more than Rs 300 crore had taken place. 

The case was registered on the basis of the police report. A formal order regarding the probe is expected to be issued in a couple of days. 

Meanwhile, the BJP is planning to approach the court to seek a CBI probe into the scam. 

There are reports that the persons who figure in the crime branch list of accused have a close connection with CPM leaders.

The main accused and bank's former secretary TR Sunil Kumar and former manager M K Biju are ex-office bearers of the CPM local committee and current party members. 

Despite their involvement in the loan scam, the party has not taken any action against them yet. The allegation about their closeness to top party leaders has gained strength.


There's already an intense debate as to why not even a single person has been arrested yet despite the loan fraud generating such a huge controversy and the crime branch registering a case. 

Meanwhile, the workers belonging to various political parties have started separate agitations in front of the bank.  

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