The Karuvannur Co-operative Bank faces a crisis due to financial wrongdoing including embezzlement and loan frauds. Meanwhile, the KTDFC's downfall is primarily due to poor management causing distress to its investors who trusted the government's assurances. They now worry about recovering their investments.

Initially created to support KSRTC, the institution now faces financial troubles having lent over Rs 2200 crore to the Transport Corporation alongside substantial expenses on commercial projects. The chances of reversing this situation remain uncertain. Although it might seem like a transaction between the Corporation and KTDFC, investors are rightly concerned about their investments and demand their money back.

People trust financial institutions to allow them to withdraw their funds when needed. KTDFC cannot justify its inability to return deposits by claiming the money was loaned to the Transport Corporation. The High Court has rightly questioned this issue, warning KTDFC against choosing a convenient time to refund. Investors simply want their money back, and among them are both ordinary citizens and retired high-ranking officials who invested due to government guarantees.

If government guarantees prove unreliable, it raises questions about the security of such institutions. The inability to repay fully matured investments doesn't occur on its own; over-lending is the root cause of this crisis, similar to many co-operative banks. Proper statutory audits could have saved many banks and government intervention is essential to rescue KTDFC from collapse.

KTDFC provided a substantial loan to the Transport Corporation based on government assurances. It's evident that an insolvent corporation cannot fully repay this loan and even salaries rely on government support. Therefore, repaying KTDFC's loan should be a priority ensuring the return of investors' money. The government needs to provide at least the necessary amount to achieve this goal without taking any actions that might mislead investors.