Cooperation Minister VN Vasavan has said that strict action will be taken against the administrators of Kandala Seva Sahakari Bank near Kattakada, who have been accused of misappropriating funds worth over Rs 100 crore.
A departmental inquiry conducted after the Karuvannur Co-operative Bank scam came to light found similar malpractices in some other banks, including Karappuzha, Kumaranallur (in Kottayam) and Kandala. The proposed amendments to the Kerala Co-operative Societies Act are aimed at preventing such malpractices, he said while answering questions in the Assembly on Tuesday.
He said the investigation conducted by the Assistant Registrar, Kattakada, who submitted its report to the Joint Registrar, Thiruvananthapuram, has found the Kandala Seva Co-operative Bank responsible for various malpractices.
While the Society’s explanation of the findings was found to be unsatisfactory, the department has issued a show cause notice as to why the administration should not be dissolved. The respondents were given time till Tuesday to respond, but they moved the Kerala High Court seeking relief. Nonetheless, the department has taken steps under section 32 of the Kerala Co-operative Societies Act, he said.
Mr. Vasavan pointed out that the existing norms often provide an opportunity for violators to go free even if they commit financial fraud. The draft amendments are likely to be tabled in the next assembly session.
Following detection of misappropriation of an amount of ₹219.33 crore in Karuvannur Sewa Sahakari Bank, the department appointed MS Sherin, a Senior Deputy Accountant General of the Indian Audit and Accounts Service, as Director of Cooperative Audit on deputation basis. has done. They said.