Alleged financial irregularities are putting the Kannur CPI(M) education society under scrutiny

Allegations of financial irregularities and lack of transparency have put the Kannur CPI(M) district leadership on the defensive over the functioning of the CPI(M)-led North Mabar Education Society, which was collecting equity contributions to set up a self-financing college in Iritty, with investors demanding transparency about the funds and progress of the project.

Founded in 2015, the company had planned to establish a people’s educational institution aimed at providing opportunities to students from the hilly areas irrespective of caste, religion or political affiliation. The investors questioned why the proposed college had not materialized even after almost ten years and demanded either the immediate implementation of the project or the return of their money with corresponding returns.

Equity amounts were collected from members of the public initially with a larger target of mobilizing ₹4–5 crore. According to company president and Kannur district panchayat president Binoy Kurian, 28 lakhs were finally collected from 328 shareholders. The company claims to have since acquired 38 cents of land near the town of Iritty, despite allegations that no land was purchased despite a ground-breaking ceremony held in March 2017.

One of the shareholders, CPI(M) local committee member Joseph Thomas claimed that he had raised the matter at several places before party officials, challenging the company’s claim and demanding documentary evidence.

“If they say that 38 cents of land was purchased using money collected from shareholders, they should produce the title deed of that land,” Mr. Thomas told The Hindu. He demanded that the receipts used for collecting the money should also be produced and tallied to see if the ₹28 lakh they demanded had actually been collected.

He said the foundation stone ceremony was held at the old bus stand in Iritty in March 2017 in the presence of the then Education Minister C. Ravindranath, KPCC president Sunny Joseph and CPI(M) leader P. Jayarajan, though the society had reportedly not acquired the land at that time.

Mr Thomas said the issue had been repeatedly raised by party members and shareholders before various party committees and senior leaders, including P Jayarajan and MV Jayarajan. He alleged that the CPI(M) state committee member and the district secretariat member also conducted an inquiry and collected evidence from the complainants almost six years ago, but no effective action followed.

“Why didn’t the governing body call a proper shareholders’ meeting to explain the financial situation or assure investors that their money was safe. If the project could not be implemented because the amount raised was insufficient, why wasn’t a shareholders’ meeting called and the position explained,” he asked.

Mr Thomas also disputed claims that the land could be sold at a profit and investors’ money returned. “Were people being asked to invest in an educational institution or to allow a company to run a real estate business?” he asked, adding that society owed an explanation of the efforts made over the past decade to set up the proposed institution.

He said the project was initially presented as an alternative education initiative to meet the needs of students in the hilly region and as a counter initiative of Pragathi College associated with RSS leader Valsan Thilankery. People contributed because they believed that such an institution would create educational and employment opportunities for the youth. Their trust must be protected, he said.

Mr Thomas argued that continued uncertainty could damage public confidence in future community initiatives. He also referred to disputes elsewhere over collections and financial responsibility, saying that trustworthiness could only be demonstrated by the production of documents and accounts.

However, Kurian dismissed the allegations as baseless. He said the society was formed to establish a self-financing college and start collecting shares for land acquisition and development of the institution. The intention was to set up a parallel educational institution in Iritty, he said.

“The project has been affected by demonetisation, floods and the COVID-19 pandemic, which has disrupted the proposed fund mobilization and other activities,” he said.

He said that the company had collected only ₹28 crore through its organizational network and bought 38 cents of land near Iritty town on Nerampokku road towards Keezhur-Kudumbam by paying an advance which has a current market value of around ₹1.5 to 2 crore.

Mr. Kurian said the land is held on behalf of the company and that its value is sufficient to repay the money invested by the shareholders.

“The company was considering whether to sell the property and acquire a larger plot of land or mobilize additional funds to continue with the college,” he said.

He dismissed any complaints from shareholders that their money had not been accounted for or that they had not received share certificates.

“We have handed over share certificates to all those for whom the money was received,” he said, adding that there was no specific complaint from any shareholder that the amount paid was not recorded.

He said the company had initially projected to raise about 5,000-6,000 shares and mobilize ₹4-5 crore. Mr. Kurian also said that the company tried to run a parallel college, but the number of students dropped significantly after COVID-19, forcing it to end the initiative. The progress of the project was also explained before the party committee, he added

Published – 30 Aug 2026 12:35 PM IST