Following the multi-crore Karuvannur Co-operative Bank scam, another co-operative society is teetering on the brink of collapse, posing a serious threat to Wayanad farmers, depositors, and retail vendors across the state. The common thread between these scams is that both are controlled by the Communist Party of India (Marxist) (CPM).
Brahmagiri Development Society (BDS), a co-operative entity affiliated with the state’s Dairy Department, is now grappling with severe financial turmoil, leaving more than 600 depositors, poultry farmers, raw material suppliers, franchisees, and over 200 employees in a state of uncertainty.
The crisis unfolded when a group of depositors, who had not received their monthly interest, stormed the BDS head office at Pathirippalam. Their protest shed light on the society’s deteriorating financial condition. Subsequently, broiler chicken farmers joined the outcry, demanding the return of their deposited funds after BDS announced the temporary closure of its meat processing project.
Stakeholders and employees point to the high cost of servicing loans and delays in the disbursement of state funds, exacerbated by the society’s struggles and the challenging market conditions in the aftermath of the COVID-19 pandemic, as the primary causes of the current crisis.
The collapse of the parent organization could have far-reaching consequences, as it is overseeing several projects worth crores of rupees that are at various stages of progress. The ramifications could significantly impact numerous businesses across the state, according to sources.
The Wayanad community is growing increasingly concerned about the state of co-operative societies, particularly those under the control of CPIM. The recent string of scams has eroded public trust in these organizations, raising questions about their financial management and transparency.
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