A new financial scandal has erupted in Kerala, with an internal audit commissioned by the Communist Party of India (Marxist) revealing serious irregularities in the Brahmasiri Development Society in Wayanad. The audit found that the society, registered as a charitable trust but operating like a cooperative bank, accepted deposits of around ₹130 crore from the public and cooperative banks, violating the Chit Funds Act and other regulations. The report also uncovered suspicious transactions, including the receipt of ₹30 lakh in alleged black money, and loans given without proper documentation or interest.

The audit, submitted in 2023, was initially suppressed by the society’s leadership, which is controlled by the CPIM. The party leadership has now barred the audit team from submitting a final report. This scandal follows the massive Karuvannur Cooperative Bank fraud, where over ₹300 crore was siphoned off, and the ED’s chargesheet named senior CPIM leaders including AC Moideen, MM Varghese, and MP K Radhakrishnan. The modus operandi included creating fake documents, pledging the same property multiple times, and granting benami loans. Over 30,000 depositors are still waiting to recover ₹260 crore from the Karuvannur bank.

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The Brahmasiri case is the latest in a series of financial irregularities plaguing the CPIM-controlled cooperative sector in Kerala. Similar scams have been reported in Ayyanthole, Mappranam, Perinthalmanna, and Kandalur service cooperative banks, all allegedly involving party leaders and local functionaries. The ED and other agencies are investigating the links between these frauds and the party’s election funding and office construction.