In a major embarrassment to the ruling CPM in Kerala, a Dubai resident has accused Binoy Kodiyeri, the elder son of the party's state secretary, Kodiyeri Balakrishnan, of cheating his firm of crores.
The CPI-M, heading the ruling LDF, also claimed the Dubai police today gave a "clean clearance certificate" stating its central department of criminal investigation "certifies that the above mentioned individual (Binoy) is of good conduct and behaviour until the issuance date of the certificate (today)".
In a statement here, the CPI (M) State pointed out that there was no case against Binoy in any court in India and that Binoy himself had clarified that there was no case or travel ban against him in Dubai.
Hasan said in the complaint that after several failed attempts to extract the dues, the Dubai public prosecution proclaimed Binoy a wilful defaulter.
The chaos was over a media report alleging that Binoy Balakrishnan, the son of Kodiyeri Balakrishnan, had committed Rs 13 crore fraud with a Dubai-based company.
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Balakrishnan and Binoy termed the allegations "baseless".
Mainstream media outlets had on Wednesday carried reports that Binoy Balakrishnan was an accused in a case of financial fraud registered in Dubai.
Earlier, the Congress-led UDF raised the issue in the assembly and staged a walkout after its demand for the probe was rejected by Vijayan. He also said that the government won't probe the allegations as it hasn't received any complaints yet. "The government is not ready for any probe based on motivated allegations", the chief minister said.
Hasan accused Binoy of not repaying Rs 36 lakh of the auto loan, and having "escaped from the UAE to India" before the due date of repaying the loan he had taken for business. Party would take action if the issue is against the principles of the party, " said the chief minister. The people of Kerala, Leader of the Opposition Ramesh Chennithala said, had the right to be informed about the alleged fraud that had shamed the entire expatriate community of Keralites in the Gulf. Amidst repeated heckling from the treasury benches, he said CPI (M) MLA Vijayan Pillai's son Sreejith also faced similar allegations of funds embezzlement with a case filed against him at the Chavara police station for a bounced cheque.
In a statement issued to the media, the secretariat said, "If at all, there is any dispute between two parties over a financial dealing, using it as a stick to beat the party is a political conspiracy". CPI (M) polit bureau member S Ramachandaran Pillai said the allegations were a civil dispute and it should be settled in court and the party can not intervene.