By Express News Service

THRISSUR: The crime branch team investigating the Rs 300 crore loan fraud at Karuvannur Service Cooperative Bank arrested four former director board members of the bank on Monday.

Former president of the bank K K Divakaran, former director board members Baiju T S, Jose Chamkrampilly, and Lalithan V K were arrested for their alleged role in facilitating the fraud. The 13-member director board of the bank was dissolved by the cooperative registrar after it was found that the bank employees have availed multiple loans by misusing the documents pledged by customers to avail loans.

Five accused persons, including the former secretary of the bank T R Sunil Kumar, were arrested by the investigating team in August. Sunil Kumar had served as the secretary of the bank for 21 years. The search is on for Kiran who had availed a loan of Rs 23 crore from the bank. There are rumours that Kiran has gone abroad. Other arrested persons include former accountant Jilse, junior accountant Reji Anilkumar, commission agent Bijoy A K and former branch manager Biju Kareem.

The arrest was made on the conclusion that the director board failed to stop the loan scam, even after knowing about the incident.

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