The decision to conduct elections to the Karuvannur Service Cooperative Bank is a deliberate attempt by the Left Democratic Front (LDF) government to divert attention from one of the biggest financial frauds in the cooperative sector, alleged Thrissur District Congress Committee (DCC) president Joseph Tajet.
Addressing the media here on Wednesday, Mr. Tajet criticised Chief Minister Pinarayi Vijayan for maintaining “a conspicuous silence” on the Sabarimala gold controversy during his address at the inaugural of the LDF’s Southern Region Vikasana Munnetta Jatha at Chelakkara. He noted that despite speaking for over an hour, the Chief Minister did not utter a single word on the issue which affected lakhs of devotees.
Drawing a parallel, he said the Karuvannur bank fraud was another instance where the government had shielded the guilty. Instead of coming clean on the facts, the government was now rushing into elections to create a smokescreen and bury the truth.
‘In uncertainty’
Depositors, he pointed out, continue to live in uncertainty. While initial reports had pegged the fraud at around ₹400 crore, Cooperation Minister V.N. Vasavanlater informed the Assembly, in reply to a submission by MLA T. Siddique in November 2025, that the loss stood at ₹268 crore. “Even today, no one knows how much money is actually owed, how much will be repaid, or when,” he said.
It is under these circumstances, Mr. Tajet alleged, that the government is pushing the bank into elections on February 22, openly challenging depositors and the public. With the Communist Party of India (Marxist) [CPI(M)] enjoying a numerical advantage among members, the same management is expected to return to power, allowing the government to wash its hands of responsibility.
He further alleged a political conspiracy involving both the Bharatiya Janata Party (BJP) and the CPI(M) in the Karuvannur case, claiming that despite investigations by the Enforcement Directorate and the Crime Branch, several party leaders arrested in connection with the scam had secured bail. The CPI(M), which has been in control of the bank since 2000, bears complete responsibility for the fraud, he asserted.
The DCC president demanded that the government publish a white paper detailing the bank’s current financial position and clearly state whether the depositors’ money can be repaid in full. Protesting what he described as the government’s anti-depositor stance, he announced that the Congress would boycott the Karuvannur bank elections.
Published – February 04, 2026 08:36 pm IST
