Father Jaison was also the state director of the Kerala Catholic Youth movement.
In a statement here, KCBC Deputy Secretary General and spokesperson Stephen Althara said following media reports, the Council had set up a three-member commission to look into the allegations against the priest.
Kollannur's name had cropped up in the case relating to Shadwells, an educational management company operating from nearby Kakkanad.
It was found to be allegedly involved in the trafficking of unskilled persons to the US in the guise of attending educational conferences.
The company's CEO Tom Boby and HR Manager Suby Kurien have been arrested.
Father Jaison and four KCYM (Kerala Catholic Youth Movement) activists have been accused of being involved in the matter.