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Appropriate safety measures were not in place at the site to protect the labourers, said officials.
Two of the missing people had been found dead in early Monday afternoon. So far more than 500 people have been evacuated from their homes.
The trapped were Vinayan, a resident of Ayiroopara, and a guest worker from Bihar.
Meanwhile, the National Disaster Management Authority on Sunday said that work is on to retrieve broken parts of the auger machine and start manual digging.
Till 6 pm, up to 44 metres of an escape pipe had been inserted into the debris of the collapsed stretch of the tunnel.
Night travel (7 pm to 6 am) has been banned along the Udumbanchola-Cheriyar stretch on the Munnar-Kumily state highway from Monday till further notice.
According to local residents, the landslide happened with an ear-splitting sound, and heavy water currents are still occurring in the area where the landslide occurred
The landslip caused due to flash flood at the Pandanmala hills near Mannarkkad on Friday evening.
As heavy rain continues to batter the area, all three shutters of the Kanjirappuzha dam have been raised by 70 cm.
In light of the incessant rain and waterlogging, a relief camp has been opened at Vellikulam School.