₹10.43 cr fraud unearthed at LDF-controlled Thopramkudy Cooperative Bank; 3 employees suspended

Idukki: A financial fraud involving ₹10.43 crore has been unearthed at the LDF-controlled Thopramkudy Service Cooperative Bank in Idukki district. Police have registered a case against 13 persons, including the bank's former president and secretary, following a complaint filed by the Idukki Joint Registrar of Cooperative Societies.

According to Murickassery Police, the accused include former bank president Shine Thomas, secretary Sunitha Kumari, members of the governing committee, and bank employees. Investigators allege that the fraud was carried out through fake loan accounts, fictitious addresses, bogus Self Help Groups (SHGs) and Joint Liability Groups (JLGs), advance payments, and sanctioning loans without proper documentation.

A preliminary inquiry by the Cooperation Department found that ₹10,42,64,031 was misappropriated between 2020 and January 2026. Officials said the bank's 11-member governing committee included nine CPM members. Loans were allegedly sanctioned in the names of members, their relatives, and fictitious beneficiaries, while SHGs and JLGs were created to divert funds. Investigators also found that amounts far exceeding the permissible limit of ₹50,000 per member were withdrawn in the names of hundreds of members.

Following the exposure of the fraud, 236 loan applications reportedly went missing from the bank. Authorities alleged that the secretary, governing committee members, three permanent employees, and nine temporary staff members were involved in siphoning off more than ₹10 crore.

The inquiry found that Secretary Sunitha Kumari was liable to repay ₹3.17 crore, while former president Shine Thomas has been directed to repay ₹82 lakh. Investigators said several other officials also face substantial recovery proceedings.

Three permanent employees suspended
Following the detection of the irregularities, three permanent employees have been suspended pending further investigation.

The inspection also revealed that the secretary and several employees had taken large advance amounts from the bank and failed to repay them. Officials said the bank's own rules, which prohibit the secretary and employees from availing loans, were violated. They also revealed that the bank owed nearly ₹20 crore to Kerala Bank and around ₹10 crore to depositors, while recoverable assets currently stood at only ₹13 crore, raising serious concerns about the bank's financial stability.

The Cooperation Department has ordered a detailed investigation, with officials expecting more irregularities to surface. Although local residents had reportedly raised complaints over the past three years, the allegations were allegedly suppressed due to political influence. A fresh complaint recently prompted the District Joint Registrar to conduct an inquiry, leading to the exposure of the scam.

Police also said that ₹1.26 crore remained unaccounted for during the ongoing investigation. The mass withdrawal of 236 pending loan applications after the fraud came to light has also raised suspicion. Murickassery Police said all these aspects were investigated.