CPI(M) seeks details from office-bearers of loans availed from coop banks

STUNG by numerous reports of the involvement of CPI(M) party members in scams in various cooperative banks in Kerala, the party has started its damage control measures.

In a notice to all members of the local committee at the grassroots, the party, as reported by online news sites quoting IANS, has asked its members to immediately submit a list of all details if any of them have availed loans from Cooperative banks.

The notice also seeks information about whether the loans have been availed by the family members of the local committee members.

The members have been asked to describe the guarantees of the loans and also the repayment capacities of the comrades.

Of late across the state there have been numerous cases of fraud that have stumbled out and in a few such cooperative banks very top leaders of the party have appeared before the Enforcement Directorate officials for questioning, on more than one occasion.

Those already questioned include senior party legislator and former State Minister A.C. Moideen, M.K. Kannan, former party legislator and president of the Kerala Bank, besides district secretary of the party in Thrissur — M.M. Varghese.

According to state Minister for Cooperation V.N. Vasavan, also a senior CPI(M) leader has pointed out that the Cooperative banking sector in the state has a 40 per cent share in the banking business in Kerala with a deposit base of over Rs 2.5 lakh crore and have extended loans to the tune of Rs 1.86 lakh crore.

Of these cooperative banks, a majority of them are controlled by the CPI(M) at the local level. At present a few local level leaders of both the Communist parties in Kerala are cooling their heels in jails.