Kannur: A CPM-backed education society that had been collecting money from the public for setting up an arts and science college in Iritty since 2015 has dropped the college project, saying it is not financially viable in the present circumstances. The society has also said it is prepared to return the money to shareholders if they demand it.

North Malabar Education Society president Binoy Kurian, a CPM leader and Kannur District Panchayat president, said on Saturday, September 5, that a meeting of the shareholders would be convened to decide the future course of action.

Kurian said there had been no financial irregularity in the society and that the shareholders’ money was safe. The society, he said, collected only ₹24 lakh through share contributions and used the money to acquire a 38-cent plot in Iritty.

The land, however, was purchased in the name of an office-bearer rather than the society. Kurian said this was because the society did not have sufficient funds to complete the purchase in the society’s name. An advance of ₹25 lakh was paid towards the sale agreement, he said.

The plot is now worth more than twice what it was when it was acquired, Kurian said, arguing that the shareholders had therefore not lost their money.

The society had initially planned to establish a full-fledged college by buying around five acres.

After buying the 38-cent plot, an unaffiliated 'parallel' college, offering university-level courses, was set up. Now that has also been wound up. "Even the top parallel colleges in Kannur that had 2,000 and 3,000 students now have only 100, 150 and 200 students," he said.

Kurian said the society has not decided what to do with the land. "We will call a meeting of the shareholders and take a decision based on their views. If they want the money back, we are ready to return it. We will not misuse anyone’s money,” he said.

The North Malabar Education Society was formed in 2015 under the aegis of CPM's Iritty Area Committee. Back then, Kurian was the area committee secretary.

Leaders of the CPM and its youth organisation DYFI in Iritty are the office-bearers of the society.

According to reports, the society printed more than 10,000 receipt leaflets to collect money from the public. The society had five shareholder classes, A to E, and collected ₹1 lakh, ₹50,000, ₹25,000, ₹10,000 and ₹1,000 from them, respectively.

On March 18, 2017, the CPM organised a programme in Iritty to lay the foundation stone for the proposed arts and science college and distribute share certificates to contributors. The contributors were told at the time that an advance had been paid for a prime plot in Iritty town.

Money continued to be collected from the public even in January 2023, according to shareholders, but there was no subsequent communication about the status of the project.

The lack of progress had triggered discontent among shareholders. Thomas Joseph, a CPM local committee member in Ulikkal, came out earlier this week and said those who contributed money did so believing they were helping build a respectable and properly functioning college. “The enthusiasm shown by the (party) leadership while collecting money was not seen in taking the project forward," he said.

When there was no progress, shareholders approached the party. The party then appointed a two-member inquiry commission, but the shareholders were not informed about its progress,” Joseph said.

He said it was the responsibility of the CPM leadership to address the concerns of those who had contributed money.

The issue has been simmering within the CPM for the past week after Malayala Manorama reported on August 30 that the college project had failed and that the concerns of shareholders had not been adequately addressed. The report said "crores of rupees" were raised by the society.

Though the CPM Iritty Area Committee dismissed the report, a week later Kurian has now come out to announce that the society was dropping its plan for a college.