Kannur CPI(M) education society faces heat over unbuilt college, fund opacity

The Kannur district leadership of the CPI(M) is on the defensive after shareholders of the party-led North Malabar Educational Society accused it of financial irregularities and lack of transparency over a proposed self-financing college in Iritty that has not taken off even after nearly a decade.

The society, formed in 2015, had planned to set up a people's educational institution for students from the hilly regions, irrespective of caste, religion or political affiliation. It collected share contributions from the public with an initial target of mobilising ₹4-5 crore. According to society president Binoy Kurian, who is also the Kannur district panchayat president, ₹28 lakh was eventually collected from 328 shareholders.

However, investors have questioned why the college has not materialised and have demanded either immediate implementation of the project or the return of their money with appropriate returns. One shareholder, Joseph Thomas, a CPI(M) local committee member, has alleged that he raised the issue before party leaders on several occasions and demanded documentary evidence.

"If they say that 38 cents of land was purchased using the money collected from shareholders, they should produce the title deed of that land," Mr. Thomas said. He also demanded that the receipt books used for collecting money be produced and totalled to verify the claimed ₹28 lakh.

Mr. Thomas noted that a foundation stone ceremony was held at the old bus stand in Iritty in March 2017 with the participation of then Education Minister C. Ravindranath, KPCC president Sunny Joseph and CPI(M) leader P. Jayarajan, although the society had allegedly not acquired land at the time. He claimed that a CPI(M) State committee member and a district secretariat member had conducted an inquiry nearly six years ago, but no effective action followed.

He questioned why the governing body had not convened a proper meeting of shareholders to explain the financial position or reassure investors. "Were people asked to invest in an educational institution, or were they authorising the society to conduct a real estate business?" he asked, adding that the society owed an explanation on efforts made during the past decade.

The project was originally presented as an alternative educational initiative to counter the Pragathi College initiative associated with RSS leader Valsan Thilankery. Mr. Thomas said people contributed because they believed the institution would create educational and employment opportunities for youngsters, and their trust had to be protected.

Rejecting the allegations as baseless, Mr. Kurian said the society was formed to establish a self-financing college and had begun collecting shares for acquiring land and developing the institution. He said the project was affected by demonetisation, floods and the COVID-19 pandemic, which disrupted fund mobilisation and other activities.

Mr. Kurian said the society had purchased 38 cents of land near Iritty town on the Nerampokku road towards Keezhur-Kudumbam by paying an advance, and the land now has a market value of around ₹1.5 crore to ₹2 crore. He said the land was held in the society's name and its value was sufficient to repay the shareholders. The society was considering whether to sell the property and acquire a larger parcel or mobilise additional funds to proceed with the college.

He denied any complaints from shareholders about unaccounted money or missing share certificates, saying certificates had been given to all those for whom money was received. He also said the society had initially envisaged collecting about 5,000 to 6,000 shares and mobilising ₹4-5 crore. The project's progress was explained before the party committee, he added.