Under the cover of small deposits-taking 'Nidhi' company, Vinod Kumar is running a money chain scam, says investigating officer.
Facing public pressure, CPM's Mylapra branch secretary Saju Manidas, who is also an employee of the bank, said he would resign from the post.
The irregularities at the bank are pegged at Rs 300 crore, but the government estimates it to be only Rs 150 crore.
Observing that the deposits were being returned without any criteria, the court directed the government to seek ways to avail loans to tide over the crisis.
Chandramati is yet to come to terms that her life savings of Rs 4 lakh, which she deposited in the bank to support her old age, vanished into thin air one fine morning.
The situation demands an urgent intervention of the govt, which should come out with stringent measures to stop the mafia, or else the damage to the state’s rural economy will be beyond repair.
The minister has claimed that the family was provided with a sum for treatment.
Mallya is accused in a bank loan default matter of over Rs 9,000 crore involving his defunct Kingfisher Airlines.
The duo cheated 17 banks by committing financial irregularities, diverting funds, fabricating books and round tripping funds to create assets using public money.
The loan was taken from the Ezhamkulam branch of the Kerala Bank.