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Finance

Alleged financial fraud linked to Malappauram district panchayat puts IUML in a spot | Kerala News

Alex Walia
July 30, 2025
2 Min Read


Malappuram: An alleged financial fraud perpetrated by the members of the Malappuram district panchayat has put the Indian Union Muslim League (IUML) in a spot of bother. Mounting public anger and the planned protest marches by the Democratic Youth Federation of India (DYFI) may add more pressure to the party.

It alleged that local IUML leaders and district panchayat members amassed funds from gullible people and businessmen, making them believe that they would be made part of the development schemes awarded by the local body.

Many have also alleged that perpetrators set up benami companies and awarded projects to these firms. DYFI also alleged that they diverted crores of rupees from the government-sanctioned funds to fake firms.

It has emerged that around 200 people have lost money after they were tricked into investing in a fraudulent scheme, with many saying that they were made to hand over cash at the district panchayat office.

Complaints submitted to the District Police Chief alleged that transactions even took place in the office with the knowledge of the district panchayat president, vice-president, and other senior officials.

Despite the gravity of the allegations, Mankada Police SHO Vishnu P said his station has not received any complaint, nor has any been forwarded by the district police.

However, six affected people have filed a written complaint with Malappuram District Police Chief R Viswanath, naming IUML leader and district panchayat member TP Haris for financially defrauding them. One of the complainants, KP Abdul Jaleel, confirmed approaching the senior officer and said that more details would be revealed within two days.

DYFI has announced a protest march to the district panchayat office on August 1. Its Malappuram district secretary K Syam Prasad said the fraud was not the handiwork of one individual but a coordinated fraud involving the creation of a benami company and the misappropriation of crores of rupees.

“This was carried out with the full knowledge of IUML and panchayat leaders. Taking action against only one member is a clear attempt to downplay the scale of the scam and shield those truly responsible.”

He pointed to audit reports from previous years that highlighted major irregularities, including improper contracts awarded to accredited agencies and unauthorised agreements with contractors.

DYFI district leadership also said that they would approach the state government with the request to conduct a detailed inquiry into the scam. Last week, DYFI activists blocked a district panchayat board meeting and staged protest marches across all 18 block centres in the district.



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Last Update: July 30, 2025

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