Even as the controversy over a raid by the Vigilance on branches of the Kerala State Financial Enterprises (KSFE) continued to rage, its Chairman Peelipose Thomas on Monday said the raid had failed to unearth any major irregularities in its operations.
“A verification of accounts in 36 random branches had shown that there were no major issues with the KSFE as alleged. Not even a single chitty had been opened without taking deposit while there were no such thing called blank chitty,” Mr. Thomas said.
He said substitution was totally permissible under the Chit Funds Act while no ineligible candidate ever took part in auctioning. “The auction minutes are promptly prepared and submitted to the registrar. So there is no scope for any malpractice,” he added.
Holding that the KSFE would respond if the VACB pointed out any procedural irregularities, he said minor anomalies in the documentation process would soon be corrected.
As to whether the raids on the KSFE branches were instigated by ‘someone’, Mr.Thomas chose not to respond for want of clarity. “We are not sure if rivals of the KSFE had any role in it. It is a shut case as of now,” he said.
