Kerala govt has refused to allow Central agencies to probe into Karuvannur service co-operative bank scam. The Kerala police say a loan fraud involving Rs 100 crore has broken at the Karuvannur service co-operative bank.
The co-op bank is controlled by the members of the ruling left front. The swindle was carried out by giving a number of loans on the same documents.
The crime branch will investigate the matter. A Former manager of the bank is mainly responsible for the fraud.
An FIR has been registered under the IPC sections 406, punishment for criminal breach of trust. Both BJP and Congress have ganged up against the ruling CPM.