Kandala bank fraud: Benami transactions under ED scanner

Thiruvananthapuram: As per the reports, money amounting to Rs 51 crores has been swindled from the Kandala Cooperative bank under the garb of Monthly Deposit Scheme (MDS). 

MDS chit funds were allegedly manipulated for personal gains. Crores of money were found to be rerouted to the benami accounts of Sreejith and Ajith Kumar.   

According to reports, benami transactions at the bank are under the Enforcement Directorate (ED)'s scanner. Several chits were found to have been converted to a special type of loan. By doing so, a single property can be pledged over and again to avail more and more money. 

Bhasurangan is said to be the mastermind behind the plot. The CPI leader is said to have gone out of his way to favour close allies in bank-related matters on numerous occasions. 

Apart from Bhasurangan, more bank officials and political bigwigs are said to be involved in the scam. No approval was sought from the Department of Cooperation before granting this special type of loan. It is also known that Bhasurangan had instructed officials not to notify the department regarding the mounting default payments.

Bhasurungan holds two bank accounts at the Kandala Bank with deposits of Rs 11,09,861 and Rs 92,42,544. Money amounting to crores is deposited in the accounts of his son, daughter-in-law, and wife as well. 

On the contrary, Bhasurangan and family members are said to have availed a total loan of Rs 1,87,21,000 from the bank. As per the statement issued by the bank secretary, a total of Rs 2.36 crores along with the interest has to be paid back to the Kandala bank by the Bhasurangan family.

Recently, Bhasurangan’s son Akhil Jith deposited Rs 33.9 lakhs at the Canara bank in Maranalloor in the name of a company called Malavika Enterprises. Upon inspection, Bhasurangan and Akhil’s father-in-law were found to have been holding stakes in the company, and Akhil’s relatives decorated key positions on the director board as well.