Over Rs 263 crore remains inaccessible to 30,078 depositors of Karuvannur Service Cooperative Bank, illustrating the lingering impact of the 2021 financial crisis, according to a report by The Times of India.

The bank’s troubles began on July 28, 2021, when outstanding deposits totaled Rs 313.80 crore, while current loans amount to Rs 372.98 crore, affecting the pace of repayments. Under a government-backed revival package, withdrawals have been staggered. Between November 1, 2023, and January 15, 2025, deposits ranging from Rs 50,000 to Rs 1 lakh for 24,777 depositors were fully returned, totaling Rs 63.89 crore. From the start of the crisis to September 26, 2025, the bank has repaid Rs 159.08 crore, including principal and interest, highlighting the large sums still pending.

More than Rs 260 crore remains to be returned to the depositors of Karuvannur Service Cooperative Bank, as repayments continue to depend on the recovery of defaulted loans and other dues, according to government data. Efforts are underway to realise these amounts, while surcharge proceedings against those responsible are expected to contribute to repayment. Investigators trace the scam back to 2010, though it came to public attention in 2021, involving illegal loan sanctions, benami transactions, forged signatures, and misuse of bank assets, with losses estimated at Rs 100–180 crore. The Enforcement Directorate has charged 83 individuals, including bank officials and private financiers, with former bank secretary Sunil Kumar T R and manager Biju M Kareem among the principal accused. Many depositors, including retirees, daily wage earners, and small traders, continue to wait for their funds, highlighting the prolonged impact of the scandal.

Seven former committee members added as accused

The Crime Branch has named seven additional surviving members of previous governing committees as accused in the Karuvannur Service Cooperative Bank scam case. All are over 80 years old. Investigations suggest that the fraudulent activities began during their tenure. During the final term of this committee, the maximum permissible loan for an individual was set at ₹50 lakh, yet several borrowers received loans of up to ₹2 crore, exceeding the bank’s operational limits.

With these additions, the total number of accused in the Crime Branch investigation has risen to 31. Among non-committee accused are former bank secretary T.R. Sunil Kumar, manager Biju Kareem, his wife, chief accountant C.K. Jilse, and his wife. The remaining 26 are former committee members, some of whom served multiple terms, and some are deceased.

The Crime Branch is investigating the case as a ₹100 crore fraud, with all accused previously arrested and remanded. All the accused, out on bail, face 17 separate cases. The Enforcement Directorate (ED) has also been probing the matter, detecting ₹324 crore in alleged black money transactions and naming 83 individuals, including the CPM party. Of the 31 accused named by the Crime Branch, 13 overlap with the ED’s list.

Additionally, the ED has attached CPM assets valued at ₹128 crore belonging to 53 individuals. Despite the case being registered over four and a half years ago, the Crime Branch is yet to submit a formal charge sheet.

Depositors are left in the lurch as proceedings in one of the most high-profile bank scam cases in Kerala continue to drag on. (With inputs from Agencies)