E-Paper
CPI expels Bhasurangan after ED raids at his residence over ‘financial malpractices’
Bhasurangan was also removed on Thursday from the position of convenor of the administrative committee of the Kerala Co-operative Milk Marketing Federation (KCMMF)
The Communist Party of India (CPI) on Thursday announced the expulsion of N Bhasurangan from its primary membership following the raids of the Enforcement Directorate (ED) at his residence and at a party-controlled cooperative bank, of which he was the former president.
The ED raids, which began early on Wednesday morning and continued through Thursday at the Kandala Service Cooperative Bank near Kattakada in Thiruvananthapuram district and at premises linked to its former office-bearers, are in connection with charges of financial malpractice at the bank and depreciation of its assets amounting to ₹101 crore over several years.
“The party’s district executive which met today [Thursday] decided to expel Bhasurangan from the party’s primary membership. When the issue came to light and considering its seriousness, he [N Bhasurangan] was demoted within the party earlier. We had taken action against him twice. We understand that this is a serious matter and let the ED continue its investigation,” said CPI Thiruvananthapuram district secretary MangodeRadhakrishnan.
Bhasurangan was the president of the Kandala bank’s administrative committee for nearly 30 years and is accused of engaging in malpractices including loan fraud, exaggeration of land value put up as collateral and unauthorised recruitment and promotion of employees.
When allegations of fraud at the bank came to the fore nearly a year ago, with several investors filing complaints with the police, the committee under Bhasurangan was dismissed and a new administrative committee appointed by the government was put in place.
Bhasurangan was also removed on Thursday from the position of convenor of the administrative committee of the Kerala Co-operative Milk Marketing Federation (KCMMF), which sells products under the trade name of Milma.
The decision was announced by J Chinchurani, the state minister for animal husbandry, dairy development and milk cooperatives. The Registrar of KCMMF has been told to put in place an alternative system following the leader’s removal, she told reporters.
At the same time, state minister for Cooperation and Registration VN Vasavan said the ED raids were ‘nothing new’ as the state cooperative department had found the irregularities and took action, leading to the police filing FIRs in the case. “Why is ED not going after the hundreds of banks across the country whose licenses have been cancelled due to alleged irregularities? This [ED raid] is clearly a politically motivated action,” he argued.
Meanwhile, Bhasurangan was admitted to a hospital in Thiruvananthapuram after he complained of unease during the ED raids and questioning. Searches were also carried out at premises of his son as well as former secretaries of the bank.
BJP state chief K Surendran, who had held an adalat to collect complaints from investors who were cheated of their money at the Kandala cooperative bank, told reporters, “There are several high-profile leaders of the ruling coalition who are involved in the fraud at the Kandala bank. A member of the state cabinet has even received money looted from the bank. So this fraud is not limited to Bhasurangan alone, but to top leadership of the CPI.”
