'ED may initiate probe': AK Balan warns KSFE to keep guard against Karuvannur-like frauds

Kozhikode: CPM leader AK Balan on Saturday warned that the Enforcement Directorate (ED) may initiate a probe into the Kerala State Financial Enterprises Limited (KSFE) and directed the company to remain vigilant against chances of Karuvannnur-like scams. He made the remarks while attending the state conference of the KSFE Officers’ Union. 

He noted that ED may target KSFE too. 

The leader stated that problems existed within the KSFE even before the Karuvannur fraud came to light. “A scam of Rs 25 crores took place in the KSFE cooperative society some time back. Of the 24 accused, 21 were from here and a majority of them were innocent. Yet, they were named accused and an institution was destroyed,” Balan said. 

He further added, “We were able to eliminate fraud chit funds due to strong interventions in the last one year. We had targeted Rs 500 crore in the half-yearly chit business for 2023-24 and obtained business worth Rs 502.42 crores. No scams can be traced in that and if anyone attempts to commit frauds, then stringent action will be taken.”