Kannur: The CPI(M) has rejected allegations of fund irregularities in connection with plans to start a college under the North Malabar Educational Society in Iritty here, saying the society has land worth much more than the amount it had collected as shares.

There were allegations that the CPI(M) Iritty area committee had collected funds as shares for starting a college under the North Malabar Educational Society, but the project did not materialise and the money was not returned to shareholders.

In a statement issued on Sunday, CPI(M) Iritty area secretary Zakir Hussain said the North Malabar Educational Society was formed in 2015 under the Charitable Societies Act with the objective of providing better educational facilities in the hilly region, with Iritty as its centre.

The society initially established a parallel educational institution, Educare Academy, and planned to establish additional educational institutions, including a self-financing college, he said.

As part of this objective, it was decided to collect shares of Rs 1,000 and above from party members and sympathisers.

However, demonetisation, the floods of 2018 and 2019 and the COVID-19 pandemic affected the society's activities, he said.

With the support of party units, only around Rs 24 lakh could be collected as shares, and share certificates were issued to all those who made the payments, Hussain said.

As the targeted amount could not be raised, the society could not acquire the five acres of land required for establishing a self-financing college, he said.

The society used the funds collected to acquire 38 cents of land on Iritty-Neranmpokku Road, he said.

The parallel college started by the society initially functioned well, but a decline in student admissions to conventional courses in the parallel education sector and an increase in the number of higher secondary seats subsequently affected the sector, including Educare Academy, Hussain said.

He said the land currently held by the society was worth much more than the amount it had collected, and this was known to the society's governing body, party committees and workers.

In view of these facts, Hussain urged people to reject what he termed as media campaigns being carried out with vested interests.

This report was published from a wire feed. Apart from the headline, the EdexLive Desk has not edited the copy.