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.
