CPI(M)-backed Society Denies Collapse as Investors Wait

The Halal Fayidha Co-operative Society has denied allegations that it has collapsed or that investors have been cheated, according to a report published on 17 August 2026. The society said it had never accepted deposits and that the money collected from members constituted only share capital.

The denial comes as the cooperative, an Islamic banking venture backed by the CPI(M) and launched with promises of profit-sharing, appears to have gone into limbo, leaving its investors chasing their money.

Contents

01

What the Society is Denying

02

A Venture Launched with Profit-sharing Promises

03

Eight Years on, Investors Seek Answers

04

Unanswered Questions About the Money

05

What Investors Can Check

What the Society is Denying

In its statement, the society rejected claims that it had collapsed or that investors had been cheated. It insisted that it had never accepted deposits, and that the funds gathered from members represented only share capital rather than any form of deposit-taking.

The distinction matters because the society was set up on the Islamic banking model, which proposed accepting interest-free share investments.

A Venture Launched with Profit-sharing Promises

The cooperative was inaugurated in December 2017. It proposed accepting interest-free share investments and using the funds for investments in the industrial, commercial and construction sectors, with the profits to be distributed among investors.

The society was launched under the leadership of M Shajar, then a DYFI leader, when P Jayarajan was the CPI(M) district secretary in Kannur. Then Chief Minister Pinarayi Vijayan warned at the society's December 24, 2017 launch that the venture could run into trouble without the necessary approvals from the Cooperation Department.

Eight Years on, Investors Seek Answers

Eight years after its launch, the society has neither achieved its stated objectives nor presented its income and expenditure accounts. That gap has left investors without a clear picture of how their money was used.

Investor K P Naser of Mayyil approached Kerala Chief Minister V D Satheesan through Taliparamba MLA T K Govindan after waiting in vain for his money to be returned. Soon after the issue came to light, the society returned Naser's investment of ₹1 lakh, following which Naser withdrew his complaint.

Taliparamba MLA T K Govindan said complaints about investors being cheated by the society had been raised before the CPI(M) district secretariat and district committee much earlier.

Unanswered Questions About the Money

Office-bearers of the society have been assuring investors who make enquiries that their money would not be lost and would be returned. However, neither the CPI(M) nor the office-bearers have disclosed how much was raised through share investments or how the money was utilised.

What Investors Can Check

Readers can verify whether an entity is registered with the relevant regulator's official register, and compare official domains and contact details to identify possible clones. Absence from a warning list does not prove that a firm is safe, and any request for advance withdrawal or release fees is a general warning sign.