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Politics over Bank Account of Kochi Corporation


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Kochi: A political controversy has erupted in the Kochi Corporation following the decision by Mayor M Anilkumar to open a new bank account for the local body in a private bank. Opposition councillors have alleged that this move violates existing norms and have raised questions about the mayor’s intentions.

Allegations of Mismanagement

Opposition councillors claim that as per regulations, the corporation’s funds should be maintained in a single account. However, officials reportedly withdrew around ₹12 crore from Canara Bank and Federal Bank accounts to open the new private bank account on the mayor’s instructions.

“On October 26, 2024, the mayor directed the accounts officer to open a new account in a private bank and transfer ₹18 crore from the municipal accounts in Canara Bank and Federal Bank to the new account for contractors’ payments,” said UDF parliamentary party secretary MG Aristotle.

Fund Transfers and Contractor Payments

According to the opposition, ₹8 crore was withdrawn from Canara Bank and ₹4 crore from Federal Bank, and the amounts were deposited into the new private bank account. Payments to contractors were subsequently made through this account, they allege.

Criticism of the Mayor

The opposition has accused Mayor Anilkumar of acting as an agent for private banks, questioning the rationale behind transferring municipal funds to a private bank account.

Mayor’s Defense

In response, Mayor Anilkumar dismissed the allegations, stating that there was no controversy in his decision. He explained that the private bank had supported the corporation’s initiatives through its Corporate Social Responsibility (CSR) funds.

“The private bank had already provided CSR funding for a mobile food lab, and they have promised further CSR contributions in the future. That’s why the account was opened. If the corporation council opposes this decision, I have no objections,” the mayor said.

Opposition Stance

The opposition has remained firm in its criticism, demanding a detailed explanation and transparency in financial transactions involving public funds. They argue that the mayor’s actions bypass standard protocols and raise concerns about the influence of private entities on local governance.

Next Steps

The controversy is expected to escalate, with the corporation council likely to discuss the matter further. The opposition has called for accountability and a review of the decision to ensure public funds are managed according to established norms.

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