Kollam: The CPI district leadership has landed in trouble after its MLA S. Jayalal involved in the purchase of a private hospital here by constituting a cooperative society without its knowledge.
The state leadership has sought a report from the district committee following which it initiated an internal inquiry.
A cooperative society 'Santhwanam' with Mr Jayalal as its president allegedly signed an agreement to purchase the hospital at Mevaram for Rs 5.25 crore.
It also signed an agreement paying Rs 1 crore as an advance without seeking the permission of the party. The source of this money has also not been revealed.
Criticisms against Mr Jayalal is growing as he struck the deal even as the C. Achutha Menon Cooperative Hospital run by the district committee remains shut for the past several months due to lack of funds.
The cooperative society governing body also consists of a state women's commission member who is also a CPI state committee member. It includes CPI district council member and Chathannoor constituency committee members.
The DC learns the governing body also holds the administrative control of the hospital before paying the full amount and transferring ownership.
The CPI came to know about the deal only after Mr Jayalal gave a letter to the state committee seeking permission to sell shares to raise funds for the society.The issue turned controversial after one of its former directors and shareholders, Dr Baiju Senadhipan hailing from Chavara, had in his Facebook post revealed he was trapped in a cheque bounce case to facilitate a smooth handover of the hospital.
He also alleged that the former governing body had taken huge sums as loans without the knowledge of shareholders, which incurred a massive loss to the hospital.
The doctor had come forward to buy 51% shares of the hospital, which the former director board had agreed. He also gave a cheque of Rs 50 lakh as a surety. However, he was forced to back off from the deal after the hospital director refused to provide a receipt for his cheque.
Moreover, this cheque was submitted to the bank to encash but bounced. The doctor is now out on bail after being arrested under the Negotiable Instruments Act.
There are allegations that the newly formed cooperative of CPI members is behind the conspiracy to trap him to get the hospital.
DCC president Bindu Krishna has demanded vigilance inquiry on the deals. Congress workers under Chathannoor and Paravur block committees protested before the MLA's office in Chathannoor on Wednesday.
