Nemom Service Cooperative Bank Scandal: Inquiry Underway

The cooperative department in Thiruvananthapuram is set to launch an inquiry under Section 68(1) of the Kerala Cooperative Societies Rules to investigate alleged financial irregularities at the Nemom Service Cooperative Bank. This move comes after a preliminary probe conducted under Section 65 revealed a fraud amounting to Rs 112 crore. The new inquiry aims to quantify the exact amount lost and attribute responsibility to the accused, with the ultimate goal of recovering the losses through revenue recovery proceedings.

Key Takeaways:

• The inquiry under Section 68(1) will focus on verifying and quantifying the findings of the earlier probe conducted under Section 65, which uncovered a fraud amounting to Rs 112 crore.
• The investigating team will cross-check the preliminary findings with the bank's account records to confirm the total loss, and then calculate individual liabilities based on each accused's role in the fraud.
• The second phase of the inquiry will assess the assets of the accused, after which revenue recovery notices will be issued to repay their dues within a specified timeframe.
• If the accused fail to comply, revenue recovery proceedings will begin, as per Section 68(2) of the rules.
• Six individuals are accused of the scandal, including the former bank secretary, president, secretary, cashier, and two board members, with the first two already arrested and the latter four absconding.

Statistics:

• The alleged fraud amounts to Rs 112 crore, of which Rs 52 crore was disbursed as loans.
• Most of the loans were taken by the accused or individuals closely associated with them, with not a single repayment made.
• The total loss is expected to be quantified during the inquiry under Section 68(1).
• The investigating team aims to recover the losses through revenue recovery proceedings, which will be initiated if the accused fail to repay their dues as per the notice.

Sources:

• (Source: The Indian Express, Thiruvananthapuram)
• (Source: Times of India, Thiruvananthapuram)
• (Source: The Hindu, Thiruvananthapuram)