Kozhikode DCC seeks action against KPCC member over Karassery bank issue

The Kozhikode District Congress Committee (DCC) has submitted a report to the Kerala Pradesh Congress Committee (KPCC) on the alleged role played by bank chairman and KPCC member N.K. Abdurahman in the “attempt” by the Communist Party of India (Marxist) [CPI(M)] to take control of the party-controlled Karassery Service Cooperative Bank near Mukkom.

DCC president K. Praveenkumar told the media here on Tuesday that Mr. Abdurahman had “cheated” the party. “Our report to the KPCC has suggested strong action against him. Local party leaders had earlier told us that Mr. Abdurahman was trying to sell out the bank to the CPI(M). Though Mr. Abdurahman denied the allegation in a subsequent conversation with us, we have come to know that the charge is true,” he said. The Karassery bank had been under the control of a Congress-led director board for over two decades. It is headquartered in Mukkom and has five branches and two sub-centres in Kozhikode district.

Mr. Praveenkumar’s comments come a day after the bank was taken over by an administrative committee under the Department of Cooperation of the State government. It followed an audit report that highlighted gross lapses in the disbursement of loans. The Cooperation department also claimed that there had been complaints about the bank’s functioning, which turned out to be true after official inspections.

However, local Congress leaders claimed that Mr. Abdurahman had created a conducive situation for the CPI(M) to take over the bank. Of the 13 directors of the bank, nine were planning to move a no-confidence motion against Mr. Abdurahman, accusing him of taking unilateral decisions without consulting the director board. Meanwhile, over 800 new ‘A’ class members were added between November 29 and November 30 after illegally using the login ID and password of the staff of the Nellikkaparamb branch. Till November 29, the bank had 770 members. But within a day, the number went up to 1,599.

On December 1 morning, activists of the United Democratic Front and the bank staff staged a protest against this, claiming that the newly added members were supporters of the CPI(M). They also alleged that attempts were being made to take over the bank’s control like what happened with the Chevayur Service Cooperative Bank. By the evening, the department issued the order disbanding the existing director board, which had its tenure till 2027, and took over its administration.

The nine directors have now approached the Kerala High Court against the inclusion of the new members. The case is expected to be taken up on Wednesday. The bank staff have also filed a police complaint against the alleged misuse of their login ID and password.