MUVATTUPUZHA: CPM leader and Kerala Bank chairman Gopi Kottamurikkal has resigned from the post of Muvattupuzha Urban Bank president. The resignation was on the instructions of the party. Two bank employees have also been suspended. Deputy general manager Shanti and branch manager Sajeevan have been suspended. An investigation by the Co-operation Department had found that there was negligence on the part of the employees in the confiscation process. The bank's CEO had earlier resigned following the controversy.

Gopi Kottamurikkal resigned following a controversy over the foreclosure of a house after evicting four children while their parents were at the hospital for treatment. Co-operation Minister VN Vasavan had directed to take stern action against the officials. The minister's order came after it was found that the confiscation was in violation of government directives. The minister had directed the co-operative society registrar to look into what happened in the incident. The government's policy is to confiscate only after making sure that there is a residence for the evictees. According to the report of the registrar of the co-operative society, the action in Muvattupuzha is against this.

At the same time, Gopi Kottamurikkal said that his resignation was due to his busy schedule as the chairman of Kerala Bank. "In the Muvattupuzha foreclosure controversy, there was a lapse on the part of the bank. The move was against the policy of the government. A facility to accommodate the family should have been arranged before evicting the residents. I had a moral responsibility. I had asked the party to remove me from the post of bank president", he said.