CPM Leaders Named In Rs 50 Lakh Alleged Tribal Fund Scam In Kerala's Wayanad

An internal inquiry has reportedly found that nearly Rs 50 lakh earmarked for tribal welfare was diverted between 2021 and 2023 through unauthorised transactions involving Kudumbashree officials.

08 Jun 2026, 02:26 · www.ndtv.com

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Financial irregularities found in Van Dhan Vikas Yojana in Wayanad district, Kerala
Nearly Rs 50 lakh diverted via unauthorized transactions from 2021 to 2023
Funds were transferred through bank accounts and Google Pay to three employees

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Wayanad:

A major financial irregularity has been uncovered in the implementation of the Van Dhan Vikas Yojana (VDVY), a tribal livelihood scheme, in Kerala's Wayanad district. An internal inquiry has reportedly found that nearly Rs 50 lakh earmarked for tribal welfare was diverted between 2021 and 2023 through unauthorised transactions involving Kudumbashree officials.

According to the findings, funds allocated to eight Van Dhan Vikas Kendras registered under the Kudumbashree District Mission were allegedly transferred directly, through bank accounts and even via Google Pay, to three employees, including individuals holding positions in the CPI(M). The report alleged that around Rs 50 lakh was received by the accused through these channels.

The probe also found that some of the panchayats where financial irregularities were reported, including Thondernad and Muppainad, did not have functioning Van Dhan Vikas centres. Officials reportedly failed to maintain mandatory records, while bills, vouchers and supporting documents linked to the expenditure remain untraceable.

The report further stated that funds were released to Van Dhan Vikas coordinator Harish and special project coordinator Sai Krishna on the instructions of then Kudumbashree district mission programme manager Jayesh. While forest produce was collected and marketed under the scheme, only a small portion of the revenue allegedly found its way back to the accounts of the Van Dhan centres.

The three employees have since been removed from service. Among them, Jayesh is reported to be the secretary of the CPI(M)'s Kalpetta Civil Station branch, while Harish is a branch committee member of the party at Kalluvayal.

The inquiry has also raised concerns that tribal beneficiaries associated with the project could be implicated because of the alleged misuse of funds by officials.

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