Halal Fayidha Co-operative Society denies investment scam allegations
The Halal Fayidha Co-operative Society in Kannur has denied allegations of financial irregularities or a collapse. The society maintains that it only collected share capital from members and has not accepted deposits.
Why it matters
The case highlights concerns regarding the transparency and regulatory oversight of co-operative banking initiatives in India.
Halal Fayidah Co-operative Society Limited, Kannur, an Islamic banking initiative launched under the leadership of the CPI(M), has denied allegations that it has collapsed or that an investment scam has taken place. The society said it had never accepted deposits and that the money collected from members constituted only share capital.
The clarification followed a complaint by Mayyil resident K.P. Nasser alleging that money invested in the society had not been returned. Mr. Nasser submitted the complaint to Taliparamba MLA T.K. Govindan, who subsequently forwarded it to Chief Minister V.D. Satheesan, bringing the allegations against the society into the public domain.
Soon after the allegations appeared in the media, the money was returned to Mr. Nasser, following which he withdrew the complaint. However, the MLA sought an inquiry into the entire issue, citing claims that other shareholders also felt cheated by the society.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in