Depositors throng the Kuttanellur Service Cooperative Bank for withdrawing money after a loan scam was unearthed in the bank.
| Photo Credit: NAJEEB KK
Depositors thronged the Kuttanellur Service Cooperative Bank on Wednesday as administrator rule was imposed at the bank after a loan scam was unearthed.
In a Karuvannur bank-model scam, widespread irregularities were reported in sanctioning loans in the bank. There are allegations that the Left Democratic Front-led director board sanctioned loans using forged documents.
Following this, Joint Registrar, Department of Cooperation, M. Sabaridasan dissolved the director board of the bank and imposed administrator rule. Senior Inspector, Department of Cooperation, P.B. Pavithran is the administrator.
As news spread, depositors reached the bank to withdraw money. They were concerned about the safety of their deposits.
Minister for Cooperation V.N. Vasavan ordered an inquiry into the scam.
“Depositors do not have to panic as the bank’s assets were safe,” the Administrator said adding action was taken against the director board as guidelines were violated for sanctioning loans.
