President of CPM-controlled co-op bank quits, alleges fraud by party leaders

Pathanamthitta: The president of a CPM-controlled Adoor Service Cooperative Bank has resigned after accusing a party area committee member of committing malpractices in the bank.

Ponthamara Pillai, who announced her resignation at a press conference on Monday, is the Adoor area joint secretary of the Mahila Association and the wife of R Unnikrishna Pillai, a former MLA from Adoor and a former state committee member of the CPM. The development comes at a time when the State Assembly elections are approaching, bringing yet another CPM-controlled cooperative bank into controversy.

Ponthamara levelled allegations against P Raveendran, the former president of the bank and a CPM area committee member in Adoor. She resigned from the post, demanding an inquiry into alleged malpractices amounting to ₹75 lakh.

She claimed that ₹75 lakh, including investors’ money, was missing from the bank and raised other serious allegations against regional CPM leaders. “The other board members were planning to move a no-confidence motion against me for refusing to support their illegal actions,” she said.

The bank had also disbursed loans in violation of norms. Property documents submitted by one individual as collateral were allegedly used to sanction a larger loan to another person. The minutes book was also concealed, she alleged. Serious irregularities in the bank’s operations, which began in 1997, were detected during an audit. P Raveendran had served as president of the bank for a long period.

It was also found that the appraisal of collateral submitted for loans was carried out improperly. Loans exceeding approved limits were sanctioned, and investments were diverted for day-to-day expenses. An audit conducted by the Adoor unit inspector identified 24 violations, including 16 of a grave nature.

While Ponthamara raised the allegations at the Pathanamthitta Press Club, her husband, Unnikrishna Pillai, was waiting in a car outside. She had taken over as bank president a year ago and had contested as an LDF candidate in the Adoor municipality during last year’s local body elections.

A major complaint had earlier been filed against the bank regarding an alleged fraud during the previous administration. According to the complaint, ₹30 lakh was withdrawn from a fixed deposit without the depositor’s approval. The woman, a resident of Karuvatta in Adoor, had invested the money across multiple accounts, and it was withdrawn from one of them. She realised the withdrawal when she visited the bank to inquire about her accounts and subsequently filed a complaint in December last year.