Fraud worth crores unearthed in CPM-governed cooperative society in Kasaragod; Secretary absconding

Kasaragod: According to reports, the secretary of Karadukka Agriculturist Welfare Cooperative Society, operating in Mulleria under the jurisdiction of the CPM party, is alleged to have committed fraud amounting to crores. The accused, K Ratheesan (38), who is also a member of the Mulleria local committee, is currently at large. An inquiry has been recommended following irregularities amounting to Rs 4.76 crore during an inspection conducted by the cooperative department.

The cooperative inspector found that after siphoning off Rs 1.79 crore in several stages, Rs 2 crore was taken out through Cash Credit (CC) loans given to cooperative societies via Kerala Bank and Rs 1.13 crore in gold mortgages. An inspection conducted on April 30 revealed that the gold pledged in the name of Ratheesan’s wife and mother was not there.

Subsequent investigations revealed  that the money was siphoned by forging gold mortgage loan documents in the name of members of the bank. Some gold has also been smuggled out. Of the Rs 3 crore loan given to the society by Kerala Bank, documentation exists only for Rs 1.6 crore. It is also evident that the remaining Rs 1.94 crore has been transferred.

As per the complaint filed by the president of the governing body and member of the Karadukka CPM Area Committee, Adoor police have registered a case on non-bailable charges of breach of trust by officials. 

In a meeting convened by the banking governing council and the CPM local committee on Tuesday evening, it was decided to expel Ratheesan’s primary membership from the party. The president of the governing body said that he was shocked to learn of the embezzlement and promised that no one would lose any money.