Kannur, August 13: Depositors of a Sharia-compliant cooperative society initiated by CPI(M) leaders in Kannur are facing financial difficulties. Complaints have emerged that depositors are unable to withdraw their funds. Chief Minister V.D. Satheesan has assured that these grievances will be investigated.
The situation took a new turn when Nasar, one of the depositors who openly raised the issue, announced that he had received his deposit of 100,000 rupees back. Previously, he had stated that multiple attempts to retrieve his money were unsuccessful, and he received no response from the institution’s main promoter, M. Shazar.
Nasar remarked, “I tried calling Shazar, but he did not answer. I have no option left but to seek a legal resolution.” The matter came to the government’s attention when T.K. Govindan, the MLA from Thaliparamba, presented complaints from depositors in the Mayyil area to Chief Minister V.D. Satheesan.
Govindan noted that several complainants had approached him after facing difficulties in retrieving their deposits. After reviewing the complaints, the Chief Minister stated that an investigation would commence. Govindan also mentioned that concerns regarding the institution first arose within the Mayyil CPI(M) unit and were later discussed at the Kannur district CPI(M) committee.
This issue holds political significance as Govindan was a prominent CPI(M) leader in Kannur until the recent assembly elections. He contested as an independent candidate after the party decided to nominate M.V. Govindan’s wife. With the support of the Congress-led UDF, Govindan achieved a remarkable victory.
The Sharia-compliant financial institution, Halal Faida Cooperative Society, was inaugurated on December 24, 2017, in Kannur by then Chief Minister Pinarayi Vijayan, in the presence of senior CPI(M) leaders from the district. M. Shazar, a key CPI(M) leader who emerged from the party’s youth wing, was the main promoter of this initiative.
The establishment of this institution was part of CPI(M)’s efforts to promote Islamic banking in Kerala. The RBI had previously objected to attempts by the LDF government to establish an Islamic bank between 2006 and 2011, stating that the proposal did not comply with existing banking laws. Subsequently, the initiative was advanced as a cooperative society, outside the direct regulatory framework governing traditional banks.
Primary cooperative societies operate under the state’s cooperative system, although many accept deposits from the public and also provide loans. This model was presented as a way to integrate individuals seeking Sharia-compliant financial solutions into the formal financial system.
While Nasar’s 100,000 rupees have now been returned, the complaints from other depositors have once again placed this institution at the center of political discourse. The proposed investigation will determine whether the challenges faced by depositors are isolated incidents or indicative of a larger financial issue.
For CPI(M), particularly its Kannur organization, this controversy serves as an uncomfortable reminder of an initiative that was once promoted with considerable political backing.
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