KOTHAMANGALAM: Serious allegations of legal violations and financial irregularities have surfaced against the Navabharat Agro Multi-State Cooperative Society (NBCS), which has been operating an unauthorized branch in Kothamangalam. Recent investigations into the entity’s credentials reveal that its activities in Kerala are legally void, prompting authorities to issue a stern warning to the public against depositing funds with the society.
While NBCS claims to be a Central Government-registered cooperative, official records confirm that the society is mandated to operate exclusively in Maharashtra, Andhra Pradesh, and Karnataka. The entity has notably failed to secure the necessary legal clearance to expand its operations or solicit deposits within the state of Kerala. Consequently, financial experts warn that any investments made here are entirely unprotected by statutory safeguards.
The society has been aggressively courting small-scale investors by promising an exorbitant interest rate of 13%—nearly double the current market standards offered by commercial banks. Such high-yield promises, often unsustainable in the long run, have raised concerns of a potential “Ponzi” structure.
Furthermore, as a registered “Agro Society,” its funds are legally restricted to agricultural lending. However, evidence suggests the society is diverting capital into non-agricultural ventures. Adding to the suspicion, the society’s official website remains conspicuously silent regarding its Board of Directors or key management personnel, leaving investors in the dark about who oversees their money.
The Kothamangalam branch is reportedly managed by Sonia Sebastian, a native of Idukki with a history of legal complications. Sebastian is currently the prime accused in a high-profile cheating case registered by the Ernakulam North Police. She is alleged to have defrauded a city-based Chartered Accountant of ₹50 lakh.With the Kerala High Court recently dismissing her plea for anticipatory bail, her arrest is believed to be imminent. Sources indicate that the complainant is preparing to approach the Director General of Police (DGP) over alleged delays in police action, asserting that the accused has been attempting to influence the investigation.
Citizens are urged to verify the registration and state-specific licenses of cooperative societies before making deposits. Financial regulators warn that high-interest lures are frequently used by unauthorized entities to trap unsuspecting depositors.
