Kandala Cooperative Bank Scam: Former president N. Bhasurangan has alleged manipulation of 2020-21 audit figures, claiming the reported loss was artificially inflated despite an operational profit of ₹3.47 crore. The allegations are under review, while the bank has also faced a Section 65 investigation and an ED probe.
Former president of Kandala Service Cooperative Bank, N. Bhasurangan, has alleged that figures in the bank’s 2020-21 audit were deliberately altered, resulting in an inflated loss being reported. He claimed that the bank’s revenue income and expenditure indicated an operational profit of ₹3.47 crore, while certain income and expenditure figures were allegedly presented differently in the audit.
According to Bhasurangan, interest income of ₹18.30 crore was not appropriately reflected, while additional expenditure figures allegedly resulted in an artificial loss of ₹89.57 crore. He stated that a petition seeking review of the 2020-21 audited accounts is pending before the Director of Co-operative Audit.
The allegations come against the backdrop of an investigation under Section 65 of the Kerala Co-operative Societies Act, which reportedly assessed the bank’s loss at around ₹101 crore. An appeal against the finding is pending before the State government. The bank’s elected governing body was replaced by an administrative committee in August 2023.
The Directorate of Enforcement (ED) has also investigated the bank following FIRs concerning alleged deception of depositors. Separately, the Kerala Co-operative Development and Welfare Fund Board sanctioned ₹285 crore in March for supporting eight financially distressed cooperative institutions, including Kandala Service Cooperative Bank. CASansaar