Kannur district in Kerala is witnessing another alleged financial fraud involving a traders-run cooperative society after several investors complained that their deposits and promised interest payments were never returned.
Police have launched an investigation and are examining whether the alleged misappropriation extends beyond the complaints currently on record.
Deposits Worth More Than ₹1 Crore Under Scanner
The investigation centres on Thalassery Vyapari Vyavasayi Welfare Sahakarana Sangam Ltd, operating under the Thalassery Vyapari Vyavasayi Ekopana Samithi.
According to police:
- Multiple investors deposited substantial amounts over several years.
- Attractive interest rates were allegedly promised.
- Payments later stopped.
- The society's secretary allegedly went missing.
Investigators believe the total suspected fraud may ultimately run into several crores.
Three FIRs Registered
Police have already registered at least three FIRs based on complaints received from depositors.
According to investigators, the complainants allege:
- Principal deposits were not returned.
- Promised interest payments stopped.
- Communication with the society ceased.
- The office is now reportedly closed.
Separate investigating officers have been assigned for each FIR.
Investors Describe Major Financial Losses
According to police complaints:
- One investor allegedly deposited ₹55.7 lakh between March 2022 and July 2026.
- Another complainant claimed investments of ₹37.95 lakh between October 2024 and May 2026.
- A third investor alleged deposits of ₹17 lakh during 2026.
All complainants have alleged that neither their investments nor the promised returns have been paid.
Secretary Reportedly Missing
Police said the investigation is focusing on the society's secretary, Jojish, who allegedly collected deposits for several years before becoming untraceable.
Authorities are:
- Searching for the accused.
- Examining financial documents.
- Reviewing bank transactions.
- Verifying investment records.
Fake Deposit Documents Under Examination
Investigators also found that several investors possessed bond certificates issued against their deposits.
However, society office-bearers have claimed:
- Some bond documents may be fake.
- Certain deposits are absent from official records.
- Some receipts allegedly lack mandatory signatures.
Police are examining whether duplicate bonds and receipts were allegedly created to collect money outside official accounting systems.
Gold Deposits Also Alleged
Some complainants have further alleged that:
- Gold ornaments were also accepted.
- Higher returns were promised on those valuables.
- The accused disappeared after collecting both money and gold.
These allegations are also being verified during the investigation.
Police Examining Financial Trail
Investigators are currently analysing:
- Bank account transactions
- Deposit registers
- Bond certificates
- Receipts
- Financial documents
- Society records
- Digital evidence
Authorities say the complete money trail will become clearer once all records are reconciled.
Investigation Continues
Police have registered cases under relevant provisions of the Bharatiya Nyaya Sanhita.
At present:
- The accused has not been traced.
- The total amount allegedly misappropriated remains unverified.
- The role of additional individuals is still under investigation.
Further legal action will depend on the evidence collected.
Conclusion
The Kerala cooperative society case highlights the risks associated with investment schemes promising unusually attractive returns without adequate transparency.
While complaints currently involve deposits exceeding ₹1 crore, investigators believe the alleged financial exposure may increase as additional investors come forward and records are verified.
Shunyatax Global Insight
Shunyatax Global says that before investing in any cooperative society or deposit scheme, investors should verify its registration, statutory audit reports, financial statements, governing committee, and regulatory compliance. Never rely solely on attractive interest rates or personal assurances. Always insist on properly authorised receipts, preserve transaction records, and make payments only through traceable banking channels.