Thiruvananthapuram: CPI has ousted N Bhasurangan from the party. The decision came amidst the ongoing raids by the Enforcement Directorate at the Kandala Service Cooperative Bank. The party was under pressure to take action against Bhasurangan ever since frauds amounting to crores of rupees were detected at the bank. Bhasurangan had served as the president of the Kandala bank for over a decade. 

The decision to oust Bhasurangan was taken before the start of the CPI district executive meeting on Thurday morning.

It should be noted that Bhasurangan was admitted to the hospital yesterday as he suffered from health issues amidst the ED enquiry. However the ED is expected to continue their interrogation once he is discharged from hospital. There is a high probability that Bhasurangan might be arrested as well. 

Frauds amounting to Rs 101 crores were detected at the Kandala bank. The alleged misgovernance, fraudulent transactions and other discrepancies in the functioning of the bank over the years have now pushed the bank into a precarious position. 

The discrepancies were identified in an investigation by the Kattakada Assistant Registrar in 2021. The particular inquiry was done as per the instructions of the Department of Cooperation. However, no further action was taken upon the investigation report which was submitted in January 2022.  

From the time period between 2005-2021, bank deposits amounting to Rs 80.27 crores were diverted for various purposes. Discrepancies were identified in the management of Kandala co-operative hospital as well. The problems related to the bank started gaining public attention in 2021, however the depositors had remained optimistic.

However, since the last few months, individuals who approached the bank for withdrawing their deposits for various needs including marriage and education related purposes, are being sent back empty handed. The bank officials state that they are facing shortage of money due to delay in receiving the funds from Kerala bank and also due to the lapse of the state government in handing over the funds allotted by the Debt Relief Commission. However the Department of Cooperation opines that the Kandala bank is now in deep crisis.