Thiruvananthapuram: Surprise raids by the Vigilance and Anti-Corruption Bureau (VACB) on Kerala State Financial Enterprises (KSFE) offices in the state have embarrassed the ruling Left Front in Kerala and the development has also put the front in a difficult situation.
The VACB raided 40 branches of the KSFE on Saturday and found serious irregularities in 35 of them.
While four branches were found to have committed fraud in sanctioning gold loans, 10 kept the pledged gold ornaments without proper security.
State Finance minister Thomas Issac expressed his displeasure over the raids.
It may be noted that these raids were carried out at a time when the Central agencies, particularly the Enforcement Directorate, were probing many of the state government’s schemes for money laundering deals.
Unusual developments are taking place in the Kerala CPI(M) ever since the Left Front government brought the controversial ordinance, adding Section 118A to the Kerala Police Act.
Senior party leader Anathalavattom Anandan said the raids were part of a conspiracy hatched between some VACB officers and private financiers. He raised doubts over the VACB officers’ claim that their raid followed complaints from the public and told the media that the agency should reveal the names.