A probe by the Idukki Cooperation department has allegedly unearthed financial irregularities worth over ₹10 crore at the Communist Party of India (Marxist) [CPI(M)]-controlled Thopramkudy Co-operative Bank, near Cheruthoni. Following a complaint filed by the Idukki Joint Registrar of Co-operative Societies, the Murikkassery police registered a case against 13 people, including the bank’s former president, secretary, and other officials.The alleged fraud was uncovered during an investigation conducted by Jaimon A.V., a unit Inspector with the Cooperation department. Among those booked are the bank’s secretary Sunitha Kumari, former president Shine Thomas, junior clerk Ammini Madhavan, senior clerk Vishnu Mohan, and nine temporary staff members attached to the co-operative bank.According to sources, the alleged financial discrepancies occurred under the CPI(M) administration between 2021 and 2026. The bank’s former administrative wing allegedly distributed loans under the names of relatives, joint liability groups (JLGs), and self-help groups (SHGs). In addition, the bank reportedly sanctioned loans using fictitious names.A primary probe by the department detected financial malpractice totalling ₹10,42,64,031. According to the findings, Ms. Kumari is liable to repay ₹3.17 crore to the bank, while Mr. Thomas must repay ₹82 lakh. The investigation also revealed that the secretary and other staff members withdrew massive sums from the bank as advances but failed to repay them.Following the discovery of the irregularities, authorities suspended three permanent employees. The bank currently owes ₹20 crore to Kerala Bank and ₹10 crore to its depositors, but has only ₹13 crore in pending loans left to recover. Sources stated that while bank authorities collected large sums in deposits, the institution now lacks the funds to return the money to depositors.Sources added that following the 2025 elections, the LDF coalition retained power, forming an 11-member board of directors comprising nine CPI(M) nominees and two Kerala Congress (M) members. In the wake of the corruption scandal, the KC(M) nominees, George Ambazham and Saji Punnavelikkunnel, resigned from the director board.Insiders claim that the KC(M) nominees only joined the board last year and were unaware of the alleged malpractice. “Only a detailed probe can reveal the actual extent of the financial malpractice that occurred in the bank during the CPI(M) rule,” a source said. Published - July 18, 2026 08:24 pm IST