It is alleged that CPI(M) knew about the scam and appointed an inquiry commission

The party will not protect the CPI(M) members in the committee of Karuvannur Service Co-operative Bank if they are found guilty in the loan scam, CPI(M) district secretary M.M. Varghese has said.

“There is no place for those who commit fraud in the party. If they are found guilty they will be expelled from the party,” Mr. Varghese said.

A loan scam of more than ₹100 cr was reported at Karuvannur Service Co-operative Bank, near Irinjalakuda, controlled by the CPI(M) , on July 19.

The police have registered a case against six persons, including the secretary of the bank in this connection. The secretary is already under suspension.

An audit of the Joint Registrar of Cooperative Societies found that loans were sanctioned on property pledged by local customers without their knowledge. Fake applications for loans were submitted. The loan amounts were credited multiple…

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