Kattakkada: The director board members of the scam-hit Kandala Service Cooperative Bank in Thiruvananthapuram district, including its president, will submit their resignations to the joint registrar on Friday.
The department of cooperation in Kerala had detected malpractices amounting to Rs 100 crore at the bank.
A new board with N Bhasurangan as president had taken over in December last year. A leader of the CPI – a partner in the ruling coalition in the state – Bhasurangan is the convener of the administrative committee of the Kerala Co-operative Milk Marketing Federation famous by the trade name, Milma.
Currently, the bank’s director board has six CPM members, four CPI members and one LJD member. Among them, G Saji Kumar of the CPI had committed suicide after being named as an accused in an acid attack case.
All CPM members submitted their resignation letters to the party leadership last month. The lone LJD (Loktantrik Janata Dal) member G Satheesh Kumar sent his resignation to the bank president on May 30. However, when the director board refused to consider the resignation letter, Satheesh Kumar mailed it online to the joint registrar last month.
Earlier, the CPM had made some suggestions to overcome the crisis in the bank. While the CPI leadership was willing to accept the measures, Bhasurangan rejected them. Subsequently, top leaders of the CPM and CPI engaged in detailed discussions, following which they decided that the running of the bank should be handed over to an administrator. CPI soon directed Bhasurangan and other party members of the bank board to tender their resignations.
