Kerala High Court Adjourns Farmfed Co-operative Fraud Petition to March 23
In a significant development concerning alleged financial irregularities, five depositors of the Southern Green Farming and Marketing Multi-State Co-operative Society (Farmfed) have approached the Kerala High Court seeking judicial intervention. The petitioners, led by T Baburaj of Malappuram, have filed a petition requesting the court to consolidate hundreds of FIRs and complaints related to the alleged fraud and assign them to a centrally located court with appropriate jurisdiction.
Justice C S Dias Admits Petition and Issues Notices
Justice C S Dias admitted the petition filed by the five aggrieved depositors and issued notices to the respondents. The matter has been adjourned to March 23 for further hearing, marking a crucial step in the legal battle against the alleged multi-crore fraud.
The petitioners claim they deposited a total amount of Rs 91.92 lakh with Farmfed after society directors and staff promised them an annual interest rate of 12.5% along with additional benefits. However, their investments turned sour when police investigations in 2025 uncovered what authorities described as a massive financial fraud operation by Farmfed across Kerala.
Widespread Fraud Allegations Across the State
According to court documents, the alleged fraud involves crores of rupees and has reportedly cheated more than 1,000 depositors throughout the state. The petitioners stated they initially lodged complaints with the Changaramkulam police station in Malappuram but became concerned about the broader handling of similar cases.
The depositors allege that hundreds of complaints have been filed at various police stations across Kerala by other affected individuals, yet FIRs have not been registered in all instances. In some cases, authorities have only invoked provisions of the BUDS Act rather than pursuing more comprehensive fraud charges.
Allegations of Police Pressure and Previous Legal Attempts
Adding to their grievances, the petitioners claim that police have been pressuring them to settle the matter out of court and that they have faced threats during the process. This development follows an earlier unsuccessful attempt by Baburaj to secure a CBI probe into the alleged fraud through the High Court, which was rejected.
The current petition represents a strategic shift in legal approach, focusing instead on case consolidation to ensure more effective prosecution of what appears to be a widespread financial scheme.
Merger Concerns and Ombudsman Intervention
Complicating matters further, the petitioners allege that Farmfed office-bearers have decided to merge the society with Natural Agro and Tourism Marketing Multi-State Co-operative Society. This move comes despite an order from the Co-operation Ombudsman, Government of India, which directed the return of deposits to 13 other depositors in a separate petition.
According to the current petitioners, instead of complying with the Ombudsman's order, Farmfed is attempting to merge with another society to evade repayment obligations. They claim this merger process is proceeding without their knowledge or consent.
Seeking Judicial Protection and Case Management
The petitioners have therefore sought an additional direction from the High Court to keep the merger process in abeyance in the interest of justice. Their primary requests include:
- Consolidation of all FIRs and complaints related to the Farmfed fraud
- Assignment of cases to a centrally located court with appropriate jurisdiction
- Protection against the proposed merger that might hinder deposit recovery
- Proper investigation into all aspects of the alleged financial fraud
The case highlights growing concerns about cooperative society regulations and investor protection mechanisms in Kerala's financial landscape. As the March 23 hearing approaches, depositors across the state await judicial clarity on how hundreds of related complaints will be managed and whether their investments can be recovered through coordinated legal action.
