Payyannur: Shocking details have emerged regarding a major fund fraud in the Martyr Dhanraj Family Assistance Fund managed by the CPI(M) Payyannur Area Committee in Kannur district. Bank records reveal that senior party leaders diverted money collected from ordinary people for Dhanraj’s family into fixed deposits in their own names and misappropriated the interest earned. The documents, released by former area secretary Kunjikrishan, have put the CPI(M) on the defensive and triggered widespread political controversy.
The records show that ₹40 lakh from the fund was converted into a fixed deposit in the names of senior leaders T.I. Madhusoodanan and K.P. Madhu at the Payyannur Railway Gate branch. The amount was reportedly transferred to their personal accounts on November 3, 2016, and remained there until 2018. Although the principal amount was later returned to the fund following internal controversy, Kunjikrishan alleges that the leaders retained and used the interest, amounting to several lakhs, for personal purposes.
Diversion of martyrs’ fund raises serious allegations
The fund was established on August 16, 2016, to support the family of Dhanraj, regarded as a martyr by the party. Within just two months, more than ₹63 lakh had been collected from the public. However, instead of transferring the funds promptly to the bereaved family, ₹40 lakh was diverted into fixed deposits under the names of party leaders. This diversion has raised serious legal and ethical concerns. Allegations suggest that redirecting money intended for a martyr’s family into personal financial instruments constitutes a criminal breach of trust. The controversy has intensified as the issue surfaced during the election period, damaging the credibility of the CPI(M) in one of its strongholds.
In addition to this, further accusations have emerged against the then area secretary, who is to have transferred ₹5 lakh into his own account. It is claimed that fabricated documents were created to show that the money had been used for housing construction, adding another layer to the alleged financial irregularities.
Political fallout and election impact
The revelations have sparked outrage among party workers and the public, with critics accusing CPI(M) leaders of exploiting emotional appeals in the name of martyrs to collect funds and then misusing them. The alleged interest fraud, in particular, has been described as a betrayal of trust that undermines the party’s moral standing. Kunjikrishan, who has brought these documents into the public domain, is now contesting the Payyannur assembly constituency with the support of the UDF. He has made the alleged fund scam a central issue in his campaign, intensifying political tensions in the region.
Payyannur has long been considered a stronghold, or “iron fortress”, of the CPI(M), making these allegations particularly significant. The timing of the disclosures, coinciding with the election season, has amplified their impact, turning the issue into a major topic of debate across Kannur district.
Despite initial attempts by the party to contain the fallout, the release of bank records has forced the CPI(M) leadership to respond publicly. Calls for a thorough and impartial investigation are growing louder, as the controversy continues to dominate local political discourse. The unfolding developments have not only shaken public confidence but have also placed the CPI(M) under intense scrutiny. As more documents related to the alleged fund scam emerge, the issue is rapidly evolving into a major political flashpoint in Payyannur and beyond.
