Sulthan Bathery: The CPM-controlled Brahmagiri Development Society (BDS) has landed in fresh trouble after the Sub Court, Sulthan Bathery, directed the society to repay ₹52.65 lakh to a depositor.

The society, which already owes large sums to more than 100 depositors, has been in the spotlight over mounting legal battles and public protests. The latest court order is another blow to the ailing cooperative, which is reportedly struggling to pay salaries to its remaining employees.

The verdict, issued on September 18, came in a case filed by Murali NR, who had deposited ₹50 lakh in BDS. The amount ordered includes interest, and the court further directed BDS to pay 6 % interest on the amount from the date of filing the suit, along with the cost of proceedings. The case was filed against the Brahmagiri Development Society with the Chief Executive Officer and chairman as respondents.

According to the judgement, Murali deposited an amount of ₹30 lakh on September 7, 2020, with a promised interest of 11 %, and another ₹20 lakh in two cheques of ₹10 lakh each in 2021, with 10.5 % interest.  The plaintiff later withdrew an amount of ₹5 lakh while interest for the entire amount was paid regularly until August 2022.  A lawyer's notice was subsequently issued to the society on November 1, 2022.

Adv Aby Cheriyan, who appeared for Murali, said that more than 8 persons have already approached the Sub Court, Sulthan Bathery, seeking the recovery of deposits from BDS.

Depositors stage protest march
Meanwhile, the Brahmagiri Depositors’ Action Council, which now has more than 100 members, is organising a protest march to the Brahmagiri head office at Pathirippalam near here on Thursday.

Many depositors are reportedly on the verge of ending their lives as they struggle to make ends meet, the Action Council said in a press release. Several members had deposited their retirement benefits in BDS, intending to use the money for medical treatment, house construction, and their children's marriage and education.

The reports regarding the latest verdict against BDS surfaced even as hectic efforts were reportedly underway to sign a Memorandum of Understanding (MoU) with Cedar Integrated Food Tech Private Limited (CIFTL), a social entrepreneurship venture under the ESAF group of companies. The proposed partnership was based on a profit-sharing model, with a joint management committee to address managerial issues.

Founded in 1999 by late CPM leader PV Varghese Vaidyar, MLA, BDS initially focused on production and supply of sanitary products, including toilet cleaners, washing powder, and other detergents. Later, under the chairmanship of  P Krishna Prasad, BDS introduced major changes aimed at fast-track business growth. Registering ₹36 Crore turnover in 2019, the BDS incurred huge loss during the COVID-19 pandemic.