Kannur: The CPM has decided to initiate organisational action against its Kannur district committee member V Kunhikrishnan following his public allegation that district secretariat member and Payyanur MLA T I Madhusoodanan misappropriated ₹1 crore collected for providing financial assistance to the family of slain party worker C V Dhanraj and for election-related expenses.

Kunhikrishnan's allegation, made at a time when the party is preparing for Assembly election, also named senior leaders, including former state secretary Kodiyeri Balakrishnan, incumbent secretary M V Govindan and Chief Minister Pinarayi Vijayan, accusing them of shielding the accused despite being aware of the alleged misappropriation.

The issue, which has been simmering within the party since 2017, resurfaced after indications emerged that Madhusoodanan could be fielded in the upcoming election. Kunhikrishnan went public after a party-appointed commission reportedly gave a clean chit to those accused, following which disciplinary action was initiated against him.

Madhusoodanan and four others had earlier faced minor action for failing to submit accounts of receipts and expenditure on time. During this period, Kunhikrishnan, who was then serving as area secretary and was also the auditor, was removed from his post, while Madhusoodanan was demoted from the district secretariat to the district committee.

Kunhikrishnan stayed away from the party for eight months following his removal but later returned after the intervention of senior leaders. Madhusoodanan, too, was subsequently re-inducted into the secretariat.

Although Kunhikrishnan was included in the district committee during the last party conference, he continued to press for action against those allegedly involved in the misappropriation. He also raised concerns regarding the purchase of marshy land for the CPM-controlled Payyanur Rural Bank at ₹20 crore and E P Jayarajan's meeting with BJP leader Prakash Javadekar.

While the party constituted commissions to examine the issues, it also decided to censure Kunhikrishnan. He was later accused of leaking internal party information, following which he stopped attending district committee meetings and turned to writing.