THIRUVANANTHAPURAM: The CPI suffered damage in its image after the Enforcement Directorate (ED) arrested Bhasurangan in Kandala Service Cooperative Bank fraud. Although the cooperation department had investigated and brought out the fraud in 2021, the party leadership was not ready to take tough action against Bhasurangan, who had been the president of the bank for more than 25 years. Even those within the CPI criticized that the leadership failed to take action against Bhasurangan because of his relationship with the party's top brass.

A fraud of 101 crores was found when the 16 years of bank operations from 2005 were examined. The party, which did not take action against Bhasurangan despite realizing the extent of the fraud, did not dare to remove him from the position of Milma Thiruvananthapuram Region Union Administrative Committee Convener.

Severe criticism was raised in the party against Bhasurangan after the revelation from the suicide note of Sajikumar, the accused in the acid attack related to corruption in the milk society. With this, the party was forced to expel Bhasurangan from the district executive and district council in July 2023. Yet, he continued in the post of Milma Thiruvananthapuram Region Union Administrative Committee Convener. Although the District Executive sought an explanation from Bhasurangan, the issue was not discussed after that.

CPI is facing the same crisis in Kandala that CPM faced in the Karuvannur Bank issue. CPI District Secretary Mankode Radhakrishnan said that Bhasurangan was expelled from the primary membership as his activities tarnished the reputation of the party.