Kozhikode: A scam at a local branch of a nationalised bank has now acquired political dimensions as the Central probe agencies stepped in soon after the Kerala Police conducted a preliminary probe and estimated Rs 12.60 crore as the money siphoned off from a few accounts allegedly by the bank manager.

The CPM is wary that the hasty intervention of the Central agencies without consulting the State Government or without the intervention of courts is to help BJP’s active efforts to intrude into local bodies. Earlier, the Union Home Ministry had made an elaborate collection of information related to the cooperative bodies.

In debates that are heating up it is widely argued there could be a political motive too. The probe could be extended to other local bodies too citing the loss suffered by the Kozhikode Corporation. A clear picture of the probe will emerge likely in a month.

As reported earlier the manager of the Punjab National Bank (PNB) had defrauded the accounts of the Kozhikode Municipal Corporation. The Central Bureau of Investigation (CBI) and the Enforcement Directorate have commenced collection of evidence.

Legal experts say the CBI can directly interfere in the case since PNB as a public sector bank comes directly under the Reserve Bank of India. For investigating other criminal cases in the state, CBI needs the permission of the State Government. However, they point out that, in this case, it is not needed.

The sleuths of the central agencies have taken the submission of some close to the manager. The agencies intend to register a case and investigate after collecting evidence in the second stage.

Why the BJP favours CBI probe
The BJP welcomes any type of intervention by the CBI. The party gets a substantial share of the city-centered votes in Kerala in elections. It has made corporations the main target as well. In this context, many think the BJP is trying to take political advantage of the fraud case.

Meanwhile, the opposition United Democratic Front is pondering whether to approach the Kerala High Court, pleading to let the CBI probe the case.

The UDF charges that besides the bank manager, the people connected politically to the Kozhikode Corporation, too, are involved.

The ongoing Crime Branch investigation has its limits considering the political stakes involved; hence the UDF demands a CBI investigation, sources said.

The UDF expects that several matters which the CPM tries to sweep under the carpet under its governmental influence would be revealed in a CBI probe.