Financial fraud: ‘Accused used political power to cover up irregularities’ | News from Thiruvananthapuram

Thiruvananthapuram: One day after the accused in Thiruvithamcore Cooperative Fraud rejected the report of financial irregularities, the Cooperative Department stated that financial fraud had occurred in the society since 2009.
“By offering high interest rates on deposits to persons close to the board of directors and granting loans in violation of the norms, the defendants have violated all the rules of the cooperative since 2009. However, the society was in crisis only in 2022 and the audit reports of several years clearly showed this. Since the defendants used political influence to Irregularitieswe could not take any action,” said an official from the cooperative department.
When the depositors were not paid any interest or money even after the expiry of the term, the crisis came to light and even more depositors demanded their money back. “This led to the collapse of the company and the department launched an investigation. During this investigation, all irregularities since 2009 were uncovered. The statements of the accused, who denies the irregularities, are false,” the official said.
On Friday, the society's president and one of the accused in the case, MS Kumar, denied that the cooperative department had found any irregularities in the society which could be traced back to 2009. He also stated that if there were irregularities, the department would not have allowed the society to open branches in Manacaud, Sasthamangalam and Kannamoola, create 27 jobs in the society and also not to purchase land and vehicles earlier.
According to preliminary findings, a fraud worth Rs 30 crore has been committed. Cases have been filed against Secretary Indhu, President MS Kumar, Vice President Manickyam and eight board members. The cases are being filed under sections 406 of the BNS for criminal breach of trust and 420 for cheating.