Kasaragod: Adhur Police have arrested three persons, including an Indian Union Muslim League (IUML) panchayat member, in connection with the Rs 4.76-crore fraud at the CPM-controlled Karadka Agriculturist Welfare Cooperative Society in Kasaragod's Mulleria panchayat.
The arrested persons have been identified as Ahammed Basheer (58), an IUML grassroots leader and ward member of Pallikkara grama panchayat; Anil Kumar (55) of Nellikkat near Kanhangad, and Gafoor (26) of Parakalai in Kodom-Bellur grama panchayat.
Anil Kumar is the brother of Ajaykumar T V, a member of BJP's Kasaragod district committee and former Kanhangad councillor. Anil Kumar resigned as a headload worker for Food Corporation of India (FCI) and now dabbles in real estate, said his brother. "He left home saying he was going to Bengaluru. I don't know much about this case," said Ajaykumar.
Basheer, who runs a travel and tour agency in Udma, illegally received Rs 1 crore in his bank account from the Karadka society's cash credit account with Kerala Bank, said Adhur Station House Officer, Inspector Sanjay Kumar P C.
The other two accused, Anil Kumar and Gafoor, allegedly helped the main accused and Karadka Cooperative Society's secretary Ratheeshan K (38) pawn the gold jewellery he stole from the bank on May 9. All three persons are suspected to be Ratheeshan's partners and helped him channel the ill-gotten money into the real estate business, said police.
Ratheeshan -- who has been the secretary of the Karadka Society since 2011 and a member of CPM's local committee -- allegedly defrauded the institution in three ways, said CPM leaders and police. One, he illegally took gold loans (Rs 1.68 crore) in the names of his relatives and fictitious persons without keeping anything as collateral; two, he diverted Rs 1.96 crore of cash credit from Kerala Bank to illegal beneficiaries; and three, he allegedly robbed gold jewellery worth Rs 1.12 crore from the bank on May 9, after he was exposed.
Ratheeshan's alleged fraud polished off more than half the assets of the society, which has a total loan portfolio of only Rs 11 crore; a deposit base of only Rs 9 crore and a Rs 3 crore cash credit from Kerala Bank.
Cash credits are loans sanctioned by Kerala Bank to primary agricultural co-operative societies to be disbursed only to their members for agriculture and allied activities. According to CPM leaders, Kerala Bank had sanctioned Rs 3 crore for Karadka Society for the year, and Ratheeshan siphoned 65% of it.
Police said IUML's Pallikkara panchayat member Basheer got Rs 1 crore from Kerala Bank's cash credit line in two transactions - first, Rs 60 lakh and then, Rs 40 lakh.
Police said Basheer is not a member of the society but received the loan meant for members; there is a borrowing cap of Rs 3 lakh per customer if the loan was part of Kisan Credit Card or a cap of Rs 40 lakh if the loan was extended to Farmer Producer Organisations.
Kerala Bank transfers the money directly to the account of the society's members only after receiving collateral cheques of equal amounts from the society. Ratheeshan got the cheques and related documents signed by the society's president Soopi K to divert money from the society's cash credit account with Kerala Bank, said CPM leaders.
Stolen gold ornaments 'safe'
Ratheeshan -- who is on the run after allegedly defrauding Rs 4.76 crore from the bank -- pawned almost all the gold ornaments he stole from the bank's locker before disappearing from Kasaragod, said Adhur Police investigating the case.
Ratheeshan, who was barred by the society's board of directors from entering the establishment after the fraud came to light at the end of April, walked into the bank on May 9 on the pretext of collecting some documents and scooted with gold ornaments worth around Rs 1.12 crore kept in the locker, said CPM leaders.
The gold ornaments that belonged to 41 customers are safe but pawned with various money lenders in Kasaragod, said Inspector Sanjay Kumar. "He (Ratheeshan) escaped with the money, not the jewellery," the officer said.
Adhur SHO Sanjay Kumar said a team of officers are in Karnataka trailing Ratheeshan, who according to his mobile phone's signal was in Bengaluru. But by the time the team reached Bengaluru, Ratheeshan moved to Hassan. The team has reached Hassan but the elusive secretary has given a slip again. Police said they are pursuing him.
Meanwhile, Adhur Police will hand over the investigation into the case to the District Crime Branch on Friday, at the direction of the District Police Chief P Bijoy.