Fresh complaints surface in Kolithattu Service Co-op Bank fraud in Kannur

Kannur: A financial scandal at the CPM-controlled Kolithattu Service Cooperative Bank in Iritty unfolds as more investors come forward with allegations of fraudulent investments. The scandal was exposed when a local resident filed a complaint about a fraudulent loan issued in the name of his deceased father.

Following this, the investors formed an action committee and intensified protests against the bank. According to the committee, 15 individuals have filed formal complaints with the police and the Assistant Registrar's office, alleging that around Rs 30 crore were disbursed as fake loans by the bank.

"My parents were dedicated CPM workers, hosting party meetings at our home. I invested Rs 32 lakhs, my retirement savings from teaching, in the bank. I can't sleep, fearing I’ll lose all my money," said Suresh Nadamel, an investor.

The action committee on Monday staged a protest in front of the bank, with around 200 members participating. "The bank looted investors' hard-earned money, leaving many in financial distress. Those who lost money have approached the Assistant Registrar and the police, and if no resolution is provided, we will intensify our protest. We will continue until every investor is repaid," said Biju Vennalappalli, chairman of the action committee.

Political parties have rallied in support of the protests. KPCC secretary Chandran Thillangeri stated, "Those responsible for this crime must face justice. The government should safeguard the investors, as they did in the Karuvannoor bank case. This is yet another example of CPM-controlled banks deceiving investors and then feigning helplessness when people demand their money back."

Meanwhile, the CPM has taken disciplinary action against one area committee member and four local committee members, three of whom were bank employees. However, the action committee is demanding legal action against all CPM leaders involved in the fraud.