Thiruvananthapuram: The Audit Division of the Department of Cooperation has marked serious irregularities and malpractice at the Karuvannur service cooperative bank since the 2015-16 annual audit, studied.
However, there were no corrective actions initiated until the framework began to fall from the closet.
The cooperation department has been, on August 11, suspended 16 Audit Wing officials based on an investigation of irregularities in the bank.
A comparison with TOI from the temporary report submitted by the nine member request committees and audit reports from the past five years shows that most observations in the temporary report are also in the audit report.
The two main observations in the 2015-16 audit report were enough to prove that everything was not good at the bank.
The bank loan deposit ratio, which should never exceed 75%, was found 98% and a savings bank account from its employees showed a negative balance.
While the first observation shows that loans are being given no parahin, the second shows that employees attract more money than what they have in their accounts.
The 2017-18 audit report found that the Bank had lended loans outside the permitted field of operations, violations of cooperation and rules.
In March only, a large number of loans were disbursed without the right reports, including legal reports on loan applications.
This has been clearly explained in a temporary report too.
It is also found that interests are usually offered to individual senior citizens given to several institutions, other legal violations.
In the 2019-20 audit, the auditor has been offered a loan offered by violating all norms that have serious threats to the existence of the bank.
A total of 24 loan confirmation documents sent to the customer again cannot find the recipient, so it cannot take legal action against them.
The Probe Committee, meanwhile, found that after providing membership to people outside the operation field, the bank did not maintain evidence of their identity.
From here it can be concluded that such a membership, which is given a large, false loan.
According to the rules, to provide membership and loans, the person must be a permanent resident in the bank’s operation or must have property there.
While the rules say that the property where the loan is subject to sanctions need to be evaluated, records indicate that loans are disbursed outside the allowed limits (maximum RS 50 lakh for individuals) and for this, the property value is corrected.
This means that loans exceed the given limit without proper property evaluation.
Even worse, such loans are given several times on the same property.
Also, differences found in the signature of applicants in various loan documents, indicating that applicants are Bogus.
The committee also found that the team functions under members of banks, Kiran, involved in finding people, property, preparing gehan, evaluating property to estimate the number of loans, etc.
A total of 52 loans, approved Rs 215.71, were approved by pawning eight different properties and shared from each into the Kiran account, found.