Ouster of co-op bank board sparks political row in Pathanamthitta

The dissolution of the Left-backed governing body of the Tiruvalla East Cooperative Bank by the district Joint Registrar of Cooperative Societies has kicked up a political storm in Pathanamthitta, with the ousted board crying foul and threatening legal action.Acting on an order issued by the district Joint Registrar, Shaji John, Assistant Registrar (Planning) in the office of the Joint Registrar (General), Pathanamthitta, assumed charge as the bank’s administrator on August 24. The order (C.R.B. 1081/2016), issued under Section 32 of the Kerala Cooperative Societies Act, says the bank’s governing body and managing director wilfully obstructed an inquiry ordered by the Registrar of Cooperative Societies under Section 65(1) by failing to produce the registers, records and other documents sought for the investigation.The dissolved board, however, has rejected the charges as baseless and accused the authorities of acting with bias. Its members said they would move the Kerala High Court challenging the action.Jacob George, chairman of the dissolved governing body, questioned the Registrar’s jurisdiction to dissolve the board, pointing out that the Tiruvalla East Cooperative Bank is a Reserve Bank of India-licensed urban cooperative bank governed by the Banking Regulation Act.“Under Section 36AAA of the Banking Regulation Act, the power to supersede the bank’s board of directors is vested exclusively with the RBI. Even then, the board can be superseded only after giving one month’s notice,” he said.The dissolution order has also flagged alleged irregularities in certain appointments made by the bank, including the appointment of a former Kerala Bank official as managing director and two peons. The board members have rejected these allegations, maintaining that the appointments were made by following due procedure and only to posts sanctioned by the Registrar.Mr. George said the managing director’s appointment was made in accordance with an RBI circular issued following amendments to the Banking Regulation Act. The bank had advertised the post in newspapers, conducted an interview and duly informed the RBI of the appointment. The appointment of the peons, too, was made with the permission of the High Court, he said, adding that the bank had made appointments only to posts sanctioned by the Registrar.“The RBI has also completed its inspection of the bank up to December 2025 and submitted its report,” pointed out Mr. George.The board’s ouster comes just three months before its term was due to end on November 27, adding a political edge to the development. The bank, which had remained under UDF control for a long period, was wrested by the LDF in the last election. Published - August 27, 2026 05:40 pm IST