Congress Leaders Under Probe in Rs. 90.8 Lakh Co-operative Scam in Karunagappally

Karunagappally: Fourteen people, including several local Congress leaders and former panchayat officials, have been named in a police case related to a Rs. 90.8 lakh fraud at the Clappana Agricultural Improvement Co-operative Society (Q 1558). The alleged scam, which took place between January 2022 and December 2023, involved illegal withdrawals from depositor accounts, according to a police complaint and an audit report by the Cooperative Department.

S.M. Iqbal, a senior Congress leader and former panchayat president who also headed the co-operative society during the period in question, is among the key individuals under investigation in connection with the alleged fraud. Police say he is suspected of directing staff to withdraw money from accounts without the knowledge or permission of depositors. Others named in the case include former panchayat officials Surya Kumar, Sheela Sarasan, and Raymond Cardoz, as well as current society president Yatheesh and several other local congress leaders and employees.

The fraud came to light when depositors reported being repeatedly denied access to their money. An internal check found that signatures were forged and funds were withdrawn using fake documents. A total of 26 depositors have lodged complaints, reporting losses ranging from Rs. 25,000 to Rs. 15 lakh.

While the society's leadership initially blamed lower-level staff, some employees told investigators that they acted under instructions from senior officials, particularly S.M. Iqbal. These claims were supported by a Cooperative Department audit conducted by officer S. Asha, which found serious financial irregularities during the two-year period.

This is not the first time Iqbal has faced legal trouble. He is already an accused in a separate vigilance case over the installation of CCTV cameras in the local panchayat — a case filed earlier by Communist Party of India (Marxist) workers.

The latest allegations have once again drawn attention to the challenges facing Kerala’s cooperative sector, especially in societies where political leaders hold key positions. The issue has sparked fresh debate over the need for better regulation and transparency in cooperative institutions, which handle large sums of public money.

Opposition parties have called for strict action and have warned that political connections should not protect anyone found guilty of wrongdoing. The Ochira Police have confirmed that an FIR has been registered and a detailed investigation is ongoing.