Kerala police suspect a loan scam of nearly Rs 100 crore at the Karuvannur service co-operative bank- a service co-operative bank that is run by elected members of the left front. The incident came to light after a complaint was filed with the police on July 14, which informed about multiple loans were provided on the same documents. However, the case has now been handed over to the state crime branch.
An earlier departmental probe by Iringalakuda co-operative assistant registrar noticed several irregularities in the disbursal of loan above 50 lakhs. Former manager of the bank M K Biju is suspected as the main person behind the scam and an FIR has been registered under the IPC sections 406, punishment for criminal breach of trust,
420 for cheating, 409 for criminal breach of trust by public servant and 465, punishment for forgery.
Six people including the bank manager and former bank secretary are suspects in the case. When people…