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CPM seeks probe against IUML in Malappuram investment scam

As per CPM leaders, Youth League district vice president and district panchayat Makkaraparambu division member TP Haris was behind the scam where more than ₹25 crore were misappropriated.

News Arena Network - Malappuram - UPDATED: August 6, 2025, 05:35 PM - 2 min read

It is alleged that local IUML leaders and district panchayat members amassed funds from gullible individuals and businessmen by making them believe they would be included in development schemes awarded by the local body.


The CPM has demanded that the state government initiate a probe into the multi-crore investment fraud in the Malappuram District Panchayat. At a press conference here on Wednesday, CPM leaders said that the scam had occurred in the district panchayat with the active patronage of Indian Union Muslim League (IUML) leaders.

 

It is alleged that local IUML leaders and district panchayat members amassed funds from gullible individuals and businessmen by making them believe they would be included in development schemes awarded by the local body. Around 200 people reportedly lost money after being tricked into investing in a fraudulent scheme, with many stating that they handed over cash at the district panchayat office.

 

The CPM leadership alleged that the district panchayat vice president, Ismail Moothedam, is facing serious allegations related to this financial fraud. The party said that it has appealed to the government and state police chief, demanding a thorough investigation into the scam. Further, a complaint has been lodged with the Local Self-Governance Minister, MB Rajesh, seeking strict action against district panchayat secretary A Abdul Latheef.

 

As per CPM leaders, Youth League district vice president and district panchayat Makkaraparambu division member TP Haris was behind the scam where more than ₹25 crore were misappropriated. They indicated that district panchayat secretary A Abdul Latheef has been made the second accused in the case, which reflects on the seriousness of the matter.

 

Also read: Kerala TMC leader PV Anvar booked in phone tapping case

 

"The case cannot be hushed up by limiting the inquiry to TP Haris alone. The entire district panchayat leadership is in the dock, and the League leadership needs to end its silence," said E Jayan, CPM Malappuram district secretariat member.

 

He also said, "Evidence has come to hand validating the opposition's charge that all contract jobs of the district panchayat are being given to Muslim League leaders' benamis. Corruption in awarding contracts to accredited agencies has been time and again flagged by audit reports of the district panchayat. The panchayat's engineering wing has been turned into a mere rubber stamp to make these transactions."

 

"While the government is losing crores, these deals only help fill the coffers of League leaders," Jayan accused.

 

He also revealed that a retired official of the health department, who worked as an administrative assistant, is now acting as a middleman for the accredited agencies.

 

It is through the district panchayat board meetings that the individual to whom the contract is to be given is chosen, even before the project is sanctioned, reports Jayan. The funds needed to undertake these projects are raised by approaching popular League sympathisers for investments. Businesspeople and common citizens have been known to be swindled, reports indicate.

 

Investors were to receive 50 per cent of the profit, with the other 50 per cent being pocketed by a coterie made up of League leaders and middlemen. The fraud victims said the whole operation was run from the district panchayat office.

 

"All the investors were League sympathisers and activists. Most of them trusted the League leadership with their money," Jayan observed.

 

He also claimed League leaders are now trying to intimidate the victims into dropping charges.

 

 

 

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