Idukki: The registration of an FIR against Congress-led Idukki District Dealers Co-operative Society headquartered in Nedumkandam here by the Vigilance and Anti-Corruption Bureau (VACB) has sparked off a political debate in the district. Former DCC president Ibrahimkutty Kallar was also booked by VACB in the case regarding the alleged Rs.4.52 cr co-operative scam in the society which has branches in Kumily, Adimaly, and Kattapana.
Speaking to Onmanorama, Vigilance DySP Shaju Jose said that the case first probed by local police was transferred to the Economic Offences Wing of police.
“We have registered an FIR and submitted it before the Muvattupuzha Vigilance Court by invoking sections of Prevention of Corruption (PC) Act. VACB is yet to start an inquiry. The FIR has been registered with the details given by the agencies that conducted the investigation hitherto. A CI will be conducting the inquiry. As government funds are also used by society, sections of the PC Act can be invoked. We will reach a conclusion about the loss reported in the bank after conducting a detailed inquiry,” Shaju Jose said.
The FIR states the Rs 4.52 cr loss of the society was due to a fraud chitty scheme. The scheme was started in the name of society members without informing them and amounts were withdrawn from the chitty by forging signatures. It also states that fake documents were used to withdraw money from the society in the name of self-help groups. The secretary of the bank N P Sindhu, who is presently, under suspension is the first accused, and all the 12 governing committee members have also been booked. VACB officials said that matters from 2021 will be investigated.
‘LDF govt’s face-saving move after Karuvannur scam’
Former DCC president Kallar who is the last and the 13th accused in the case said that after losing face in a series of cooperative bank scams including that of Karuvannur in Thrissur, LDF and the state government were deliberatly dragging Congress-led cooperative banks into scams.
“I was co-opted into the governing committee of the bank two-and-a-half years ago as a committee seat became vacant after the death of bank's president. I have attended two meetings and signed for it. Now, the government is targeting me citing the DCC president’s post which I had held earlier. I have come to know that CM’s office took a special interest in arraigning me in the case. The case will be dealt with both politically and legally,” Kallar said.
Meanwhile, bank president Tomy Joseph admitted that the society was facing a financial crunch. “The issues in the cooperative sector after the Karuvannur Bank scam led to unexpected withdrawals. Even though several audits were done by the Cooperative department since I took charge in 2020, no anomalies were found. However, almost a year ago, an inquiry was conducted under section 65 of the Kerala Co-operative Societies Act. Anomalies like exorbitant interest rates were pointed out along with other aberrations after this,” Joseph said.
“After the Section 65 inquiry, our committee was dismissed by the cooperative department but the committee members moved High Court and the court ordered the reinstatement of the committee six months ago,” he added.
“An internal inquiry was conducted by the society as it found that the allegations regarding excess interest rate holds weight. Interest rates were not lowered as stipulated fearing that depositors would withdraw their deposits. But, the committee and the president were informed by the secretary about this. Such anomalies started in 2007. We had a 10 per cent guarantee fund. This has been exhausted. But the bank has Rs 34 cr-worth assets. But we were able to convince 75 per cent of the depositors that their deposits will be given back,” Joseph said.
