Kerala High Court Criticizes Slow Police Inquiry in Karuvannur Bank Fraud, Suggests CBI Involvement
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Synopsis
The Kerala High Court expressed strong dissatisfaction with the Kerala Police's investigation into the Rs 300 crore Karuvannur Bank fraud, highlighting the need for a CBI probe due to lack of progress. The court's remarks come amidst ongoing scrutiny of CPI-M leaders connected to the case and the ED's involvement in asset recovery.
Key Takeaways
- Kerala High Court criticized police investigation delays.
- CBI involvement may be necessary.
- Over Rs 300 crore involved in the fraud.
- Top CPI-M leaders potentially implicated.
- ED investigates asset misappropriation.
Kochi, April 10 (NationPress) The Kerala High Court on Thursday voiced its frustration regarding the "negligent behavior" of the Kerala Police's Crime Branch concerning its investigation into the fraudulent activities of the Karuvannur Service Co-operative Bank, which amounts to over Rs 300 crore.
Despite the investigation dragging on for four years, the court noted that not a single charge sheet has been submitted. The court warned that if this is the ongoing situation, the CBI may need to step in to conduct the investigation.
This remark came during a hearing of a petition requesting a CBI inquiry into the scam, particularly as various top CPI-M leaders are allegedly linked to the crime, and there has been a noticeable lack of progress in the investigation.
The Kerala government’s counsel indicated that essential documents required to advance their investigation have been confiscated by the Enforcement Directorate, which is also probing the affair.
As the counsel stated that it would take three months to review the transactions from the past decade, the court expressed dissatisfaction, stating that under such circumstances, the CBI should take over the case.
The court has scheduled the next hearing for Friday.
Just two days prior, the ED had interrogated CPI-M MP and former state minister K. Radhakrishnan, who served as the party's Secretary for the Thrissur district during the time of the alleged fraud.
Other prominent CPI-M figures who have been questioned include senior legislator and former minister A.C. Moideen, former legislator M.K. Kannan, along with several leaders from the Thrissur district.
Although the ED's investigation is based on the FIR filed by the Kerala Police, the agency is preparing to submit its final charge sheet very soon.
The ED has stated that loans from the co-operative bank were improperly sanctioned and distributed to individuals and their proxies through a coordinated conspiracy involving the bank’s secretary, committee members, and the bank manager, all of whom have been allegedly colluding since 2010.
The inquiry has uncovered that the Karuvannur bank sanctioned fictitious loans on the same properties multiple times, often without the knowledge of its members.
Moreover, loans were granted to non-members based on inflated property values, with the funds subsequently misappropriated and laundered by the implicated beneficiaries.
This loan disbursement was reportedly conducted at the direction of CPI-M District Committee members who had control over the bank's governing body.
The Kochi Zonal Office of the ED has provisionally seized assets worth Rs 10.98 crore related to the ongoing case investigation.
The seized assets comprise one movable property and 24 immovable properties, including land and buildings in Kerala.
The immovable assets are estimated to be around Rs 10.48 crore, while the movable asset, in the form of a cash deposit, is valued at Rs 50.53 lakh.
