KOCHI: The Amicus Curiae has submitted a report to the High Court pointing out that excessive politicization and mismanagement are the causes of irregularities in cooperative institutions in the state. It recommends that auditing in cooperative institutions be made more precise and that criminal cases be filed against employees and members of the board of directors involved in corruption. The report also suggests that vigilance officers should be informed about irregularities in a timely manner.

The report highlights that most investors in cooperative institutions are elderly, and therefore, a period of more than one year should not be allowed for the repayment of investments. The Division Bench appointed Advocate D. Kishore as Amicus Curiae in response to petitions filed by investors who have faced delays in the return of their investments. The court will consider the matter in the coming days.

Tax evasion under the guise of investment schemes

• Cooperative societies should be categorized as either those that can be revived or those that cannot.
• A retired district judge or a senior advocate from the High Court should be appointed to oversee the closure of cooperative institutions that are unable to repay investments.
• The Kerala Cooperative Deposit Guarantee Scheme introduced by the government in 2018, as well as the 2024 Revival Fund Scheme, are insufficient to address the problems faced by investors. The schemes only provide protection for investments up to two lakhs.
• There is a lack of effective oversight from the cooperative department.
• Cooperative institutions are engaging in tax evasion under the cover of monthly investment schemes.
• Cooperative banks facing Enforcement Directorate (ED) investigations should not be included in the Kerala Cooperative Revival Fund Scheme.