Kannur, Kerala: Police have arrested the secretary of a cooperative society in Kerala for allegedly defrauding investors of around ₹4.5 crore by promising unusually high interest returns before shutting down the institution and absconding. The accused, who had allegedly been on the run for nearly a month, was apprehended in Rameswaram, Tamil Nadu, following a coordinated search operation.
The accused has been identified as K.C. Jyothish, a resident of Pinarayi in Kerala and the secretary of the Thalassery Vyapari Cooperative Society. According to investigators, he allegedly persuaded numerous investors, including his relatives, to deposit money by offering returns significantly higher than prevailing market rates. Many victims are believed to have invested their lifetime savings based on those promises.
Police alleged that after collecting large sums from depositors, the accused abruptly ceased the society’s operations and disappeared. When investors later sought to withdraw their deposits, they were reportedly unable to recover their money, prompting them to approach the police.
Based on complaints filed by depositors, the Thalassery Police registered four criminal cases against Jyothish and launched an investigation. Preliminary findings indicate that he had been absconding since June 26, 2026, during which investigators tracked his movements across multiple states.
According to the police, the accused first travelled to Mumbai before moving through several locations in Tamil Nadu in an apparent attempt to evade arrest. Acting on technical surveillance and intelligence inputs, investigators eventually located and arrested him in Rameswaram.
Following his arrest, Jyothish was brought back to Kerala and is currently being interrogated at the Thalassery Police Station. Investigators are attempting to determine how the allegedly collected funds were used, whether the money was transferred to other bank accounts or assets, and whether any accomplices were involved in the suspected fraud.
Police are also examining financial records, bank transactions, and documents related to the cooperative society to establish the total number of affected investors and the overall financial loss. Officials said more complaints could emerge as the investigation progresses, potentially expanding the scope of the case.
Financial experts caution that investment schemes promising unusually high or guaranteed returns should be treated with extreme caution. They advise investors to verify an institution’s legal status, regulatory compliance, and financial credentials before depositing money, as unrealistic return promises are often a warning sign of potential fraud.
The investigation is continuing, with police tracing the flow of the alleged ₹4.5 crore and identifying any additional beneficiaries or assets linked to the funds. Authorities said further charges may be added if fresh evidence or additional complaints emerge during the course of the investigation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
