BJP-controlled Mugu Cooperative Financial institution reviews Rs 32 crore mortgage fraud

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Categorical Information Service

KASARGOD: A day after a Rs 100-crore fraud was reported at Thrissur’s Karuvannur Cooperative Society Financial institution, the BJP-controlled Mugu Service Cooperative Financial institution in Kasaragod’s Puthige grama panchayat has reported a Rs 32-crore mortgage fraud.Mugu co-op financial institution — arrange in 1952 — slipped into pink in 2013 and is at present crippled by dangerous loans. “We now have a money liquidity of simply Rs 10,000,” mentioned chief govt officer Vijayan Panoor, appointed a month in the past to clear the mess within the financial institution.

Mugu financial institution has a mortgage portfolio of Rs 50 crore, of which Rs 32 crore is on the point of being declared non-performing property, mentioned its president and BJP chief P Venkataramana Bhat, who turned president in 2018. He alleged his predecessors defrauded the financial institution by giving loans to their relations and different clients with out due diligence and in some circumstances by indulging in dishonest.  Bhat mentioned the brand new board requested Kerala Financial institution, the lending financial institution of the cooperative financial institution, to nominate a CEO to place the home so as. Vijayan, the chief accountant of Kerala Financial institution’s Mullleria department, was appointed because the CEO final month.

Vijayan discovered that 80% of the financial institution’s debtors had been ineligible. The largest frauds had been dedicated by P Narayanan Nambiar, who was the secretary of the financial institution for 33 years from 1980 to 2013, his predecessor Shankara Bhat, who was the secretary from 2013 to Could 2020, and BJP chief Narayana S, who was the president of the financial institution for 10 years from 2008 to 2018, mentioned president Venkataramana Bhat.

“Collectively, the three former officers and their households owe Rs 5.72 crore to the financial institution,” he mentioned. Nambiar and his household owe the financial institution Rs 3.69 crore. He gave loans to his mom, spouse, kids, and sister. “He took 5 completely different loans by pledging the identical property. He additionally took a house mortgage for a non-existing home,” mentioned the CEO.

Nambiar’s successor Shankara Bhat took cost in 2013 when the financial institution began reporting losses. It has been reporting losses since then. As we speak, the financial institution with a turnover of Rs 70 crore has a cumulative lack of Rs 38 crore.

However that didn’t cease Shankara Bhat from indulging in comparable irregularities, mentioned Vijayan. He took a mortgage of Rs 2 crore below varied schemes. He nonetheless owes Rs 1.03 crore to the financial institution and Narayana S has an impressive mortgage of Rs 1 crore. After the BJP took management of the financial institution, the celebration began appointing workers affiliated to the celebration, mentioned IUML chief Abdulla Mugu, who was the director of the financial institution for 25 years.

“It was a UDF financial institution and again then we had administrators from all events. As we speak, all the administrators are from the BJP. There is no such thing as a test and stability which is another excuse for the decline of the financial institution,” he mentioned. Mugu Co-op financial institution has filed complaints with the Vigilance and Anti-Corruption Bureau and the Kerala Police. The Kasaragod DySP held talks with the three former officers and set deadlines to repay the loans. “The DySP has brokered a compensation settlement between the three males and the financial institution,” he mentioned.

However there isn’t a roadmap to get well the remainder of the mortgage given to the two,000-odd clients. “Will probably be an extended highway to restoration. The three officers clearly indulged in dishonest and prison conspiracy to defraud the financial institution. We is not going to surrender our cash,” mentioned Vijayan.

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