THIRUVANANTHAPURAM: With several elderly depositors having passed away while waiting for their savings to be returned, the investigation into the BSNL Engineers’ Co-operative Society scam continues to face repeated delays, including a stalled ED probe that was to be completed by January 2026 as per a High Court directive.
Though financial liability has been fixed on several former BSNL officials who served on the society’s board and more than 300 properties linked to a few accused have been conditionally attached, the case under the Banning of Unregulated Deposit Schemes (BUDS) Act remains pending before the High Court. This is delaying the commencement of actual recovery proceedings, depositors say.
The case, filed by the Registrar of Co-operative Societies and the Crime Branch on behalf of the depositors, is awaiting a verdict on the applicability of Sections 3 and 5 of the BUDS Act. Depositors say although it has been identified who is responsible, the absence of the mandatory follow-up ‘Report 68(2)’ has prevented the Joint Registrar from legally initiating recovery.
They also allege that several BSNL officials named in the Registrar’s report are yet to be added in the police chargesheet. Depositors say the delay has had devastating consequences. Most of them are senior citizens and many of whom depended entirely on the interest income from their deposits to meet daily expenses.
Adding that their age and health limit their ability to stage protests, they also pointed to cases where elderly depositors were allegedly sidelined by family members after losing life savings, while some families were forced to cancel weddings and other events due to the financial loss.
Depositors also allege that BSNL and the DoT have shown apathy by failing to take punitive action against board members accused in the case, some of whom are reportedly still in service.