Kannur: A major financial scandal involving the misappropriation of crores of rupees collected for a party office memorializing the late senior CPM leader and former State Secretary Kodiyeri Balakrishnan has rocked the CPM in Kannur. In a swift response that has put the party on the defensive, CPM East Local Secretary E. Ramesh was urgently removed from all organizational duties during a recent Area Committee meeting.
The revelation has sent shockwaves through CPM circles across the state, as the fraud involves funds collected in the name of one of the party’s most revered figures. Allegations surfaced regarding significant irregularities in funds raised from the public and local cooperative institutions by a prominent local committee in Kannur town, prompting the District Committee to launch a preliminary investigation that eventually unveiled the betrayal.
Misuse of Position and Land Registration Malpractices
The investigation revealed that the former Local Secretary bypassed party protocols and organizational principles for personal gain. Standard party procedure dictates that land and property acquired for party offices are registered under the official designation of the incumbent Local Secretary. However, Ramesh registered the property and an existing house under his personal name.
Ramesh subsequently mortgaged the property with a bank to secure a substantial loan, which he utilized for personal expenses. This grave breach of trust has sparked intense resentment among party workers and local loyalists.
Unaccounted Collections, Raffles, and Exhibitions
Over the last two years, funds were mobilized under various schemes for the Kodiyeri Memorial Fund from party sympathizers and the general public:
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Raffle Coupons: Thousands of coupons priced at ₹500 each were sold across the region, offering a car as the grand prize. However, investigations found that the lucky draw was never conducted.
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Exhibitions: A large-scale exhibition named “Kaazhcha” was organized in Kannur town to raise additional funds.
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Cooperative Sector Contributions: Substantial sums were collected from employees and high-ranking officials of prominent cooperative institutions in Kannur by leveraging party influence.
Despite these extensive collection drives, no proper records or entries were maintained in the local committee’s account books. Instead of being deposited into the official party accounts, the funds were diverted into private accounts. The full extent of the financial diversion remains unquantified.
Probe Launched Into Broader Involvement
The CPM district leadership suspects that more party office-bearers may be involved alongside Ramesh. Adding to the gravity of the situation, Ramesh is a close relative of the Area Committee Secretary, raising questions about whether senior local leaders were aware of or complicit in the financial irregularities.
To determine the true depth of the fraud and identify all individuals involved, the CPM District Committee has appointed a two-member commission of inquiry. The panel has been instructed to conduct a thorough financial audit of the local committee’s affairs.
While the party has currently restricted its action to organizational disciplinary measures, the political ecosystem in Kerala is closely watching to see if the incident will escalate into a formal legal and police investigation.
