Thiruvananthapuram: Rabco, a prominent cooperative institution under CPM control, has plunged into a severe financial crisis, unable to return deposits collected from various cooperative societies. The institution’s financial mismanagement and prolonged failure to settle loan dues have now led to a legal blow, as a court has directed the seizure of its headquarters and other key assets.
For years, Rabco has been reeling under mounting losses amounting to crores, with growing complaints over misappropriation and irregular diversion of funds. Its financial position has deteriorated so badly that the cooperative even struggled to disburse salaries to its staff on time. The inability to honor deposit repayments to affiliated societies has triggered widespread unrest and legal battles.
The latest crisis unfolded when cooperative societies from Vazhayur, Manjeswaram, and Thrikkalathur approached the court seeking redressal for non-repayment of their deposits. Responding to the petitions, the court ordered the confiscation of 67.5 cents of land and the Rabco head office building situated in Kannur.
Meanwhile, the Cooperatives Department is reportedly trying to intervene and block the asset seizure. Officials argue that the confiscated property is mortgaged to the government against existing loan commitments and hence should not be liquidated.
As Rabco’s troubles mount, the developments have raised serious questions about the oversight and transparency within politically affiliated cooperatives, with depositors now anxiously awaiting justice and recovery of their hard-earned money.