Congress Leader Quits Over Kattakkode Co-op Bank Scam

Thiruvananthapuram: In the midst of an ongoing investigation into corruption at the Kattakkode Co-operative Bank, the resignation of the bank president — a Congress leader — has taken place. S. Subramania Pillai, who was both the President of the bank and the General Secretary of the Thiruvananthapuram DCC (District Congress Committee), has stepped down. He had been serving as president since 1988. The bank is alleged to have been involved in a corruption scandal amounting to around Rs. 35 crore.

The problems began when the bank failed to repay depositors and those who had won chits. To avoid public attention, the president and members of the governing board reportedly visited depositors at their homes to pacify them. However, the issue came to light when even KSRTC (Kerala State Road Transport Corporation) pensioners were not paid their dues.

It is reported that nearly Rs. 13 crore is pending just for chit fund holders. The crisis worsened as the president, board members, their relatives, and some local Congress leaders allegedly took large loans without repayment. Furthermore, relatives of some Congress leaders defaulted on chit payments.

It was during the cooperative department’s inquiry into complaints from depositors that the president resigned. Now, depositors who have not been repaid are preparing to protest in front of the bank. The bank, long controlled by the Congress, has often seen internal conflicts among board members and local leaders over the alleged sharing of misappropriated funds.

Even during the last board elections, the LDF (Left Democratic Front) had accused the president and board members of corruption. The CPI(M) Kattakkada Local Committee has demanded that steps be taken to recover the hard-earned money of hundreds of depositors and that legal action be taken against those involved in the corruption.