Idukki: CPM-controlled Munnar Service Co-operative Bank reports irregularities worth crores. It was discovered that the fraud was committed under the guise of a company called Maxi Munnar. Serious irregularities were found in the audit of the financial year 2022-23.
It was found that a company called Maxi Munnar, in which Munnar Service Co-operative Bank holds 97% stake, was formed without following the rules and the bank sanctioned an overdraft of Rs 12 crore 25 lakh to the company without sufficient collateral. According to the report, the resort purchased with the bank’s funds was illegally handed over to the company without the registrar’s permission.
The audit report found that 3% of the shares of the resort were in the name of CPM leaders. The co-company was formed without following the rules under the Co-operative Societies Act. 97% stake in the company is held by the bank. 3% share was acquired by CPM leaders and former secretary. Munnar Service Cooperative Bank started three projects with an investment of Rs.50 crores.
The cooperative bank has started projects like resort, amusement park, zip line etc. It was these projects that led to the formation of the joint venture and changed to that name. At the time of submitting the financial transaction report of the bank for auditing, there is no figure regarding the profit of the 3 tourism projects transferred to the associate company. The resort was purchased by paying extra money without the permission of the Joint Registrar. There is no permission from the Cooperative Department to transfer the projects to the associate company.
The bank’s explanation is that Maxi Munnar has ceased operations due to the loss of approval under the Cooperatives Act Amendment. The bank’s governing body said that the company’s income and expenditure figures have been conveyed to the co-operative department and the matter will be clarified in the next financial year’s audit.
