A special audit by the Assistant Director of Cooperative Audit, Udumbanchola, has found large-scale malpractices at the Communist Party of India (Marxist)-controlled Chinnakkanal Service Cooperative Bank near Munnar in Idukki district.
The audit found that the bank sanctioned huge amounts as loans on forged title deeds for mortgaged land without proper verification and in violation of cooperative law and rules.
“A large number of loans have been sanctioned violating the loan amount limit without verification. As per cooperative law, loans are sanctioned only after registering the pledged land in the name of the bank. But at the Chinnakkanal bank, large loans have been sanctioned without following the process,” says the audit report.
“The bank sanctioned huge amounts as loans to Chinnakkanal resident V.X. Albin and Suryanelli resident Velookkunnel Jimmy Scaria without collecting revenue records and without registering land in the name of the bank. However, a verification revealed that the Udumbanchola Land Records (LR) Tahsildar had submitted a recommendation to the Devikulam Subcollector to cancel the title deeds. The former bank secretary and senior clerk had allotted huge amounts as loans to their family members without proper documents,” it says.
The audit has also found irregularities in land dealings of the bank. “The bank bought land at Chinnakkanal, BL Ram, Muttukadu, and Suryanelli. The land deals were done without taking permission from the Joint Registrar and without following the legal process. The land deals, including one for a petrol pump, caused a huge loss to the bank.”
The report states that on detecting malpractices at the bank, the former bank secretary Sabu M.S. was placed under suspension on August 8, 2021. “It is a joint scam and the entire bank leadership is responsible for the malpractices. Only a high-level probe can reveal the real extent of the malpractices,” says the report.
Idukki District Congress Committee general secretary Bijo Mani said the government should order a High Court-monitored inquiry into the irregularities in the bank. “The present bank secretary and CPI(M) area committee member V.X. Albin received huge amounts as loans from the bank through forged title deeds. A Karuvannur model scam occurred at the Chinnakkanal Service Cooperative Bank and the CPI(M) leadership tried to cover up the issue,” Mr. Mani said.
