The Halal Fayidha Co-operative Society Limited in Kannur has firmly rejected allegations of financial misconduct and claims of its collapse. These assertions surfaced after a complaint from local resident K.P. Nasser, who alleged that his investment had not been returned. Following the media coverage of these allegations,Nasser received his funds back and subsequently withdrew his complaint, but matter has prompted further scrutiny .
Local MLA T.K. Govindan,who received Nasser's complaint, has called for an inquiry into the society's operations,citing concerns from other shareholders who feel similarly aggrieved. In response,society president C . Abdul Kareem issued statement on August 16, asserting that the claims of an investment scam are unfounded. He emphasized that the society has never accepted deposits, and all funds collected from members were strictly share capital.
Established on August 25,2017,the society commenced operations on November 13 of the same year. Kareem explained that while the bylaws allow for the acceptance of deposits, society has adhered to its policy of only raising share capital. To date, it has collected ₹17.28 lakh through the issuance of 6,913 shares. Of this amount, ₹6.65 lakh has been allocated for essential operational expenses, including office infrastructure and equipment.
The society's financial practices have been subject to scrutiny, with audits conducted by the Cooperation department for fiscal years 2017-18, 2018-19, and 2019-20. Kareem noted that these audits found no irregularities,and the 2018-19 report highlighted the management committee's successful efforts in advancing the society's objectives.
Initially,the society aimed to establish large-scale meat-processing facility and had taken steps to secure land through KINFRA. However,progress was hindered by the COVID-19 pandemic and subsequent floods. Kareem reassured shareholders that under society's bylaws,they can request the withdrawal of their share amounts after three years,and those who have submitted requests have been reimbursed.
A new management committee took charge on March 6, 2025, with a renewed focus on revitalizing society's operations. Plans are underway for a shareholders' meeting in September to discuss the future direction of the organization. Kareem expressed confidence in society's resilience,stating,"Halal Fayidha will remain strong in Kannur," and emphasized commitment to ensuring that no shareholder incurs a loss.
The management has urged shareholders to disregard what it describes as “misleading propaganda” regarding the society's status. The co-operative aims to continue its efforts to restore its activities and maintain transparency with its members .
