Malappuram: The CPM has asked the state government to initiate a probe into the multi-crore investment fraud in the Malappuram District Panchayat. Addressing a press conference here on Wednesday, CPM leaders said the scam took place with the active support of the Indian Union Muslim League (IUML).

It is alleged that local IUML leaders and district panchayat members amassed funds from gullible individuals and businessmen by making them believe they would be included in development schemes awarded by the local body. Around 200 people reportedly lost money after being tricked into investing in a fraudulent scheme, with many stating that they handed over cash at the district panchayat office.

The CPM leaders alleged that the district panchayat vice-president, Ismail Moothedam, is facing severe heat related to this financial fraud. The party stated that it has approached the government and the State Police Chief, urging a detailed inquiry into the scam. Additionally, a formal complaint has been submitted to Local Self-Governance Minister MB Rajesh requesting stringent action against the district panchayat secretary, A Abdul Latheef.

According to CPM leaders, Youth League district vice president and Makkaraparambu division member of the district panchayat, TP Haris, spearheaded the scam involving the misappropriation of over ₹25 crore. They pointed out that district panchayat secretary A Abdul Latheef has been named the second accused in the case, underscoring the gravity of the issue.

“The case cannot be whitewashed by restricting the investigation to just TP Haris. The entire district panchayat leadership faces allegations, and the League leadership must break its silence,” said E Jayan, CPM Malappuram district secretariat member.

He further stated, “Information has emerged confirming the opposition’s allegation that all contract works of the district panchayat are being awarded to benamis of Muslim League leaders. Corruption related to the awarding of contracts to accredited agencies has been repeatedly highlighted in audit reports of the district panchayat. The engineering wing of the panchayat has been reduced to a rubber stamp to facilitate these deals.”

“While the government loses crores, these transactions only serve to enrich the pockets of League leaders,” Jayan alleged.

He also revealed that a retired health department official, who had served as an administrative assistant, is now functioning as a middleman for the accredited agencies.

According to Jayan, district panchayat board meetings select the person who will be awarded the contract even before a project is officially approved. To raise the funds required for implementing these projects, popular League sympathisers are approached for investments. Businesspersons and ordinary citizens alike have reportedly been defrauded in the process.

Investors were promised 50 per cent of the profits, while the remaining 50 per cent would be pocketed by a group consisting of League leaders and middlemen. Victims of the fraud have stated that the entire operation was centred around the district panchayat office.

“All the investors were League sympathisers and activists. Most of them trusted the League leadership with their money,” Jayan noted.

He also alleged that League leaders are now attempting to pressure the victims into withdrawing their complaints.