The district Crime Branch has taken over the probe into the alleged embezzlement of funds of ₹15.24 crore from the Kozhikode Corporation’s accounts with Punjab National Bank (PNB).
Deputy Commissioner of Police A. Sreenivas said here on Friday that the police had widened their dragnet in their search for the main accused M.P. Rejil, senior manager of the PNB Eranhipalam branch, who allegedly manipulated bank documents to swindle the money to his father’s account and later to his personal account. Rejil has been absconding since the issue came to light.
A team from the Chennai regional office of the PNB is leading the internal inquiry into the fraudulent transactions in the accounts of the civic body. The bank has assured the Corporation that the missing amount will be returned to the accounts in a few days.
Mayor Beena Philip said the Corporation filed three complaints with the Kozhikode Town police station. “The bank authorities never informed us about any of the fraudulent transactions. In fact, they had given us rigged monthly statements for the past year. So we did not smell any fraud. Even the auditing went smoothly, “the Mayor told reporters.
“We ourselves unearthed the fraud completely. It started when the bank responded that the money we requested was not available in our accounts earlier in November. But we got a call from the previous bank manager confirming that the money will be deposited soon and this was promptly done,” the Mayor said.
CPI(M) district secretary P.Mohanan addressing the public as part of the Left Democratic Front’s march to the Punjab National Bank Eranhipalam branch on Friday in connection with an account fraud case. | Photo Credit: K Ragesh
Ms. Philip said the Corporation had come across fraudulent transactions in various accounts dating back to May 2022. As much as ₹98 lakh was swindled from the nutrition supplements fund, ₹2.5 crore from the online tax account, ₹1.89 crore from the accounts for solid waste management, MP/MLA fund, and AMRUT office maintenance fund. However, the maximum swindling (₹10.81 crore) took place in the two Kudumbasree accounts.
Meanwhile, the United Democratic Front council party came down heavily on Corporation secretary K.U. Bini alleging that neither she nor the administrative panel of the civic body had any idea about handling the funds of the Corporation. It demanded that the administration issue a white paper on the financial situation of the Corporation and a Vigilance inquiry into the recent developments. Congress MP K. Muraleedharan stated that the Mayor could not wash her hands of the issue.
However, CPI(M) district secretary P.Mohanan said no branches of the bank would be allowed to function if the missing amount was not returned to the accounts.
Published - December 02, 2022 08:49 pm IST
