'Cooperative' bank politics in Kerala under focus

The dubious political interests over the lucrative cooperative banking sector of Kerala has come up for discussion again, with Chief Minister Pinarayi Vijayan rejecting outright a Left Front MLA's demand for Enforcement Directorate probe into the alleged black money stash by a prominent leader of the opposition camp in a cooperative bank.

Cooperative banks in Kerala that are managed by the political parties often face allegations of being havens of black money of party leaders. Out of the 1,650 odd cooperative banks in Kerala, about 75 per cent are controlled by the CPI(M) and other Left Front parties. During the demonetisation, the cooperative banks in Kerala came under allegations of facilitating illegal currency exchange and the Centre even imposed restrictions. This even led to the CPI(M) and the Congress jointly staging demonstrations against it.

The present row over former higher education minister and Left Front MLA K T Jaleel alleging huge black money dealings of Indian Union Muslim League leader P K Kunhalikutty MLA in the IUML-controlled AR Nagar Service Cooperative Bank. He raised the allegation in view of an inspection report of the Kerala cooperation department that found illegal transactions worth over Rs 1,000 crore at the Malappuram-based bank. Jaleel demanded a probe by the Enforcement Directorate into it.

However, Vijayan rejected the demand maintaining that central agencies need not be allowed to interfere into the cooperative sector of Kerala as it has its own mechanisms to probe into illegal activities. Other CPI(M) senior leaders and Kerala cooperation minister V N Vasavan also backed Vijayan's stand. The CPI(M) cadres also say that since the Left Front government in Kerala had earlier taken a stand against the central agencies in connection with the probes against the state government in connection with the gold smuggling row, a Left Front MLA himself seeking ED probe was a contradiction. Vijayan also had a talk with Jaleel on the matter.

The fresh development has triggered allegations that the CPI(M)'s real concern was that allowing the ED to look into the cooperative banking sector of Kerala many bring to focus the illegal transactions not just of the IUML controlled bank, but all cooperative banks. Since CPI(M) and left parties control a majority of the cooperative banks, such a move could be more damaging to the CPI(M) and left parties. The state even recently witnessed a major scam at a CPI(M)-controlled Karuvannur Service Cooperative Bank in Thrissur district.

It is estimated that the cooperative banks in Kerala are having deposits to the tune of Rs 1 lakh crore. The parallel banking system offered by the cooperative banks are allegedly helping the political bosses to strengthen their connection with the masses with the comparatively easier finance options.

While the Congress is maintaining silence over the present row, BJP has alleged that the unholy nexus between the CPI(M) and IUML over cooperative bank have now come out in the open. The BJP leaders from the state are also planning to urge the Centre seeking ED probe into it.

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