Thrissur: The CPM Thrissur district secretariat had decided to take stringent measures against those involved in the Karuvannur-model loan scam at Kuttanellur Service Cooperative Bank. 

Bank secretary K.P. Paul, who is also the CPM area secretary for the region, will be removed from all positions in the party. Additionally, there is a proposal to expel Rickson Prince from the primary membership of the CPM. Prince, the former bank president and a member of the DYFI district secretariat, is also under scrutiny.

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CPM state secretary M V Govindan, along with other prominent party figures, participated in the district secretariat meeting held on Monday. A final decision on these punitive measures will be made during the district committee meeting scheduled for August 22.  

The Kuttanellur bank, which has long been under CPM leadership, was embroiled in a fraud amounting to Rs 32 crores last year. Following the scandal, the bank’s governing council was dismissed. Recently, the High Court ruled in favour of the bank’s governing council, challenging the technicalities surrounding its dismissal. As a result, the CPM-led committee has re-assumed control of the bank after succeeding in elections.

Another former bank president has also faced disciplinary action in connection with the fraud.