Angamaly Urban Cooperative Society scam: investors threaten to intensify protest

Aggrieved investors of the Angamaly Urban Cooperative Society have threatened to launch a series of protests under the aegis of the Depositors’ Protection Committee, a collective of people who lost their savings in the society.

The warning came during a black flag march and protest meeting organised in Angamaly demanding the immediate arrest of those who allegedly swindled crores through fake loans. Delivering the inaugural address, P.A. Thomas, president of the committee, urged the Merchants’ Association to expel traders accused of availing fake loans worth crores and failing to repay them, thereby cheating depositors and the society at large.

The protest followed similar demonstrations last month, when investors staged black flag marches in front of the establishments and residences of those accused of defaulting on loans worth crores availed from the society.

The Crime Branch has launched a probe into the alleged ₹96-crore scam. So far, about 10 persons, including former director board members and staff, have been arrested.

Depositors have been struggling to recover their investments for the past three years. The fraud came to light after the death of P.T. Paul, former president of the society. It was allegedly carried out with the support of the land mafia, leaving investors in distress. Many were unable to withdraw their savings even for their children’s marriages or medical treatment.

Investigators found that 422 fake loans had been sanctioned against property title deeds, often without the knowledge of the original owners. Alongside these fraudulent loans, cases are being registered at local police stations based on complaints from investors over the non-return of deposits.

According to depositors, prominent traders in Angamaly siphoned off funds through illegal loans, invested heavily in real estate, and reaped profits while failing to repay.

The Depositors’ Protection Committee has demanded arrests of those who obtained loans through forged documents, attachment of their properties, and recovery proceedings by the Cooperative Department. They have also urged government intervention to ensure depositors get back their money. Further, the committee has sought action against cooperative officials who, despite the fraud, issued audit reports showing profits and recommended dividends, demanding seizure of their assets. An Enforcement Directorate probe has also been sought.