Trivandrum: In the wake of the Karuvannur Co-operative Bank fraud case controversy, the Co-operative Department is preparing to conduct inspections in all co-operative banks across the state. This was confirmed by Minister VN Vaswan.
For this special inspection units will be set up in the districts. He said the inspection would be carried out within two weeks. The Additional Registrar is responsible for the inspection. The state co-operative registrar will oversee it, the minister said.
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Meanwhile, the former panchayat, which had taken a loan from the Karuvannur Service Co-operative Bank, was hanged. The deceased has been identified as Mukundan, 63, of Thelapally. Mukundan committed suicide after receiving a foreclosure notice from a bank.
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Karuvannoor Bank has issued extensive foreclosure notices to those who default on their loans due to financial crisis. The Karuvannur Co-operative Bank has been defrauded of crores of rupees by repaying loans and transferring money to other accounts.