Idukki (Kerala): A probe by the Cooperation Department in Kerala has allegedly uncovered financial irregularities of more than ₹10 crore at Thopramkudy Co-operative Bank near Cheruthoni in Idukki. Following a complaint by the Idukki Joint Registrar of Co-operative Societies, Murikkassery police have registered a case against 13 people, including former office-bearers and employees of the bank. The allegations are under investigation, and liability will be determined through the legal process.
The investigation was conducted by Jaimon A.V., a unit inspector with the Cooperation Department. Those named in the case include former bank president Shine Thomas, secretary Sunitha Kumari, junior clerk Ammini Madhavan, senior clerk Vishnu Mohan and nine temporary employees associated with the institution.
According to the preliminary findings of the Cooperation Department, the alleged irregularities took place between 2021 and 2026. Investigators have alleged that loans were sanctioned in the names of relatives, Joint Liability Groups (JLGs) and Self-Help Groups (SHGs). The probe also indicated that some loans were allegedly issued using fictitious identities.
The department’s initial assessment has estimated the alleged financial irregularities at ₹10.42 crore. According to the findings, the bank secretary has been held responsible for repayment of around ₹3.17 crore, while the former president has been linked with an amount of approximately ₹82 lakh. Investigators have also alleged that some officials and employees withdrew significant amounts from the bank as advances but failed to repay them.
Following the findings, authorities suspended three permanent employees of the bank. The financial condition of the institution has also come under scrutiny, with reports indicating that the bank has outstanding liabilities of around ₹20 crore to Kerala Bank and approximately ₹10 crore towards depositors. At the same time, the bank reportedly has around ₹13 crore in pending loan recoveries.
Sources familiar with the matter said the institution had collected substantial deposits from customers but is now facing challenges in meeting repayment obligations. Authorities are examining loan records, financial documents, account details and other relevant records to determine the extent of the alleged irregularities.
The issue has also triggered political discussions as the bank is controlled by representatives associated with the Communist Party of India (Marxist) administration. Following the 2025 elections, the Left Democratic Front (LDF) retained power and formed an 11-member board of directors, including nine CPI(M) nominees and two Kerala Congress (M) members.
Amid the allegations, Kerala Congress (M) representatives George Ambazham and Saji Punnavelikkunnel resigned from the board. Party sources claimed that their representatives joined the board only recently and were not aware of the alleged financial irregularities.
Investigators are now examining whether the alleged malpractice involved only individual officials or whether a larger network was involved in the functioning of the bank. The probe will also look into loan approvals, repayment records, beneficiary details and internal administrative procedures.
Legal experts said that registration of a police case or allegations during an inquiry do not by themselves establish criminal liability. The prosecution will have to prove the charges through documentary evidence, financial records and other admissible material before a court.
Authorities have stated that the investigation is continuing and further action will be taken based on the evidence collected during the probe. The final extent of the alleged financial irregularities will be established only after completion of the detailed investigation.
