Minister for Cooperation V.N. Vasavan has said that a six-member special team has been constituted to investigate the alleged loan fraud at the Pulpally Service Cooperative Bank in Wayanad district.
The team has been constituted as per Section 66(1) of the Cooperative Act in the wake of a farmer, who was a complainant in the cooperative bank loan fraud case, allegedly committing suicide and many other complaints being raised by the public, Mr. Vasavan said in a statement here on Friday.
It was found in an earlier investigation that certain financial transactions during the tenure of the previous governing council, led by the UDF, at the bank were illegal, the Minister said.
The investigation unearthed embezzlement and loan fraud through benami transactions at the establishment, misappropriation of funds for the members of the body, their kin and friends, acceptance of illegal property inspection fees from loanees and grant of loans without documents. The six-member team would be led by deputy registrar T. Ayyappan Nair.
The team would investigate the embezzlement, the capital and liabilities of the bank, and utilisation of public funds against norms of the Cooperative Act, if any.
