Another cooperative bank scam surfaces in Kerala, CPI(M) leader on the run

Thiruvananthapuram: Even as the Enforcement Directorate is probing two Left-controlled cooperative banks, a fraud to the tune of Rs 4.76 crore has been detected by the bank itself at the Karadka Agriculturist Cooperative Society in Kerala's Kasargod.

This bank is under the control of the CPI(M), which is a big force in Kasargod, the northernmost district of the state.

On Tuesday, following a complaint from the president of the society, the local police swung into action and registered a case against the secretary -- K. Ratheesan, a top CPI(M) leader in the locality.

Ratheesan has been suspended and is presently on the run.

The police have named Ratheesan as the sole accused. He is alleged to have given gold loans on fictitious names and extended loans to some without taking gold as collateral security.

Meanwhile, reports have surfaced that Ratheesan is understood to have told a few people that the entire loan that he has given will be closed in a few days.

Local CPI(M) legislator C.H. Kunhambu took part in talks at the party level and said the wrongdoers in the case would be brought before the law.

This new case has come out at a time when the Enforcement Directorate has jailed around a dozen Left leaders in two cooperative bank scams in Trissur and the state capital city.