5 Years After Kerala Bank Scam, Rs 1 Crore 'Scam' Hits Cooperative Society

Nearly five years after the Karuvannur Cooperative Bank scam shook Kerala's cooperative sector, another cooperative institution has come under the scanner.

This time, it is in Thalassery, where at least three FIRs have been registered over the alleged non-payment of deposits worth more than Rs 1 crore by the Thalassery Vyapari Vyavasayi Welfare Sahakarana Sangam, a society run by traders in the town.

However, that figure could be just the tip of the iceberg.

Sources familiar with the investigation told NDTV they suspect the alleged misappropriation of depositors' money could run into several crores, with only a handful of victims having approached the police so far.

The FIRs name the secretary of the Thalassery Vyapari Vyavasayi Welfare Sahakarana Sangam Ltd, functioning under the Thalassery Vyapari Vyavasayi Ekopana Samithi in Kannur. According to the complaints, the secretary, Jojish, collected deposits over several years by promising attractive interest rates before disappearing.

An FIR accessed by NDTV revealed that a complainant, Jalaja, alleged she deposited Rs 55.7 lakh in installments between March 2022 and July 2026. She told the police she has received neither the principal amount nor the promised interest.

Another complainant, Anukul, alleged that he deposited Rs 37.95 lakh between October 2024 and May 2026 under similar assurances.

Jeshina P, 40, alleged that she deposited Rs 17 lakh in two installments this year, Rs 2 lakh in January and Rs 15 lakh in May. She too alleged that her deposits have not been returned.

According to the complainants, the society's office has since shut down and the secretary is on the run.

NDTV sources say the society will reopen only after a full audit of the accounts by the registrar.

Multiple investors revealed they were given bond documents for the money invested, but the society claims these are fake documents and that such deposits have not been recorded in the society's register.

Police suspect the prime accused created duplicate bond papers without the knowledge of the society and duped people of their deposits, exploiting the trust they placed in the trader organisation-run society.

Another depositor claimed that society secretary Jojish took his gold, promising high returns, before disappearing without a trace.

In a separate statement to the police, office-bearers of the society alleged that the secretary issued deposit bonds and receipts that were not countersigned by the society's president. They also alleged that the true scale of the suspected fraud would become clear only after the secretary is traced and the society's records are examined.

Thalassery Police have registered at least three FIRs under relevant sections of the Bharatiya Nyaya Sanhita. Separate investigating officers have been assigned to each case, and the police say efforts are being intensified to trace the accused.

The society's office-bearers have said they will cooperate with the investigation. They have also assured genuine depositors that investments made through authorised channels of the society will remain safe.