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 the Assembly election, also names 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.

Kunhikrishnan also criticised the party leadership for failing to hold the accused accountable, stating that despite the irregularities being highlighted through audit documents, the leadership chose to protect the accused.

He pointed out that, instead of acting on the alleged misappropriation of funds, the party let the accused off with merely a slap on the wrist for delaying the submission of accounts.

Kunhikrishnan's public accusation was in line with Malayala Manorama's May 4, 2022, report that said a fund raised to provide financial help to the family of CV Dhanraj, a party worker hacked to death in July 2016, had been swindled.

Madhusoodanan and four others had earlier faced minor action for failing to submit accounts of receipts and expenditure on time. During this period, Kunhikrishnan, then serving as area secretary and 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 about the purchase of marshy land for the CPM-controlled Payyanur Rural Bank at a cost of ₹20 crore, and about 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.

Kunhikrishnan said that the party will set up a commission upon receiving a complaint to protect the accused and punish the accuser. This, he explained, was the reason for making the accusation in public.

CPM Kannur District Secretary K K Ragesh responded to the ongoing issue, calling Kunhikrishnan's allegations baseless.

"Kunhikrishnan has become a tool in the hands of our political rivals. A commission set up by the party had investigated the allegation and initiated follow-up action. Kunhikrishnan had already admitted to his mistake. The party is rejecting the allegations he has raised," he said.

Meanwhile, Madhusoodanan declined to comment on the matter, stating that the party would respond.

Money swindled from three funds
The Dhanraj martyr fund was constituted in 2017, under which a total of ₹1.04 crore was collected. The fund should have a balance of ₹46.58 lakh, which is missing.

Meanwhile, the fund for constructing CPM's Area Committee office was inaugurated in 2017. The receipts do not show the collection of ₹70.5 lakh and an interest of ₹85,274. Additionally, no accounts have been maintained for funds raised by local committees through coupons.

A group under T I Madhusoodanan printed fake receipt books, each containing 25 leaves, to raise money under the assembly election fund, 2021. Two fake receipt books were submitted instead of the originals, while six fake books are missing.