Sulthan Bathery: In a significant development in the ongoing financial crisis involving the CPM-backed Brahmagiri Development Society (BDS), the Sub Court at Sulthan Bathery has ordered the auction of the Malabar Meat plant and its 4.19 acres of land on July 8, 2026, to facilitate the repayment of deposits owed to two investors.

The order was issued on Tuesday following execution petitions filed by Mariyamma Joseph and Joby K Mathew, both residents of Meenangadi, who had invested ₹50 lakh and ₹22 lakh, respectively, in various projects of the society.

Although the court had delivered verdicts in 2024 directing the BDS management to repay the principal investment amounts along with the promised returns, interest, and legal expenses, the society allegedly failed to comply with the orders, prompting the investors to seek execution of the decree through attachment and auction of society assets.

According to the latest court order, Mariyamma Joseph is entitled to receive ₹81,72,173. This amount includes her principal investment of ₹50 lakh, a promised profit share of ₹15.1 lakh, 6 per cent interest from the date of the 2024 verdict, and court costs amounting to ₹7,68,865.

Similarly, Joby K Mathew is eligible to receive ₹35,52,985, comprising his principal investment of ₹22 lakh, the agreed return of ₹6,11,900 at 10.5 per cent interest, an additional 6 per cent interest from the date of the court verdict, and litigation expenses of ₹3,43,582.

Court records show that Mariyamma Joseph deposited ₹50 lakh with the society on April 19, 2021. The amount was reportedly invested in the feed plant associated with the Malabar Meat project under the Kerala Chicken initiative operated by BDS. The society had allegedly assured her a monthly profit share of ₹75,000. Meanwhile, Joby K Mathew was promised a return at the rate of 10.5 per cent on his investment.

The court has directed that the auction proceedings be carried out on July 8 and that a compliance report be submitted before the court on July 9.

Advocate K J Vijayakumar, counsel for the petitioners, told Onmanorama that both investors belong to a prominent NRI family from the region that had invested huge sums in different BDS ventures. According to him, BDS owed an amount of ₹1.43 crore to the family alone. They had invested in BDS believing that it enjoyed the backing of the CPM and the support of the state government, making their investments secure. He added that repeated attempts to recover the money through discussions with party leaders and the BDS management had failed, leaving the investors with no option but to approach the court. One more case filed by a member of the same family is pending at the court, he pointed out.

Once regarded as one of Kerala's most successful cooperative-sector enterprises, the Malabar Meat brand of Brahmagiri Development Society had earned a strong reputation in the production and marketing of frozen meat products. The society witnessed substantial growth during the previous decade and became a flagship venture associated with the CPM in Wayanad.

However, the organisation suffered severe financial setbacks during the COVID-19 pandemic. The crisis deepened in 2022 when monthly interest and profit-share payments to depositors were reportedly discontinued. Hundreds of investors, many of whom depended on these returns for supplementary income, have since been demanding repayment of their deposits.

Public dissatisfaction has intensified in recent months. More than a hundred depositors recently staged a protest march to the BDS head office at Pathirippalam near Meenangadi, demanding immediate settlement of outstanding dues. In another dramatic incident, Noushad Ali, a former employee of the society, allegedly attempted self-immolation in front of the BDS headquarters, protesting the failure of the management to repay the deposits.

Founded in 1999 by late CPM leader and former MLA P V Varghese Vaidyar, the Brahmagiri Development Society initially focused on manufacturing household and sanitary products such as detergents and toilet cleaners. Under the leadership of Chairman P Krishna Prasad, the cooperative expanded rapidly into diverse business sectors, including poultry, meat processing, retail marketing, and food production.

The society reportedly recorded an annual turnover of around ₹36 crore in 2019. However, the economic disruptions caused by the COVID-19 pandemic, coupled with operational and financial challenges, resulted in mounting losses that ultimately led to a liquidity crisis and growing complaints from depositors.

The auction order is being viewed as a crucial legal milestone in the efforts of investors to recover their money and may have significant implications for the future of the financially troubled cooperative society.