Communist Marxist Party (CMP) leader and former chairman of the co-operative society running the Pariyaram Medical College M.V. Raghavan has said that the huge liability incurred by the college during the period of its takeover by the previous Left Democratic Front (LDF) government in 1997 contributed to the present financial crisis in the institution.

Speaking at a press conference here on Monday, Mr. Raghavan said that it was during the previous LDF government's takeover period the administrative committee had secured and spent Rs. 46.50 crore loan from HUDCO and Rs. 62 crore from the State government. Much of the amount had been spent for payment of salary and other expenses, he said adding that the Accountant General's examination had revealed the corruption and extravagant spending during the period.

The United Democratic Front (UDF)-dominant governing body had been handed over the college administration in December 2001 when it was in a stagnant condition and was about to loose its recognition. That governing body had initiated various developmental activities by taking a loan of Rs. 34 crore from the District Co-operative Bank in Ernakulam, he said. The developmental activities included setting up of Sahakarana Hridayalaya, and opening new superspeciality wings and construction of hostels, among other things. The present governing body led by the Communist Party of India (Marxist) had captured the

college governing body in an undemocratic election when the society was re-paying loans without default, he said.

Mr. Raghavan said that the present governing body was blaming the Medical Council of India (MCI) for not granting recognition to the institution. The society chairman's demand that the college be exempted from paying its annual rent amount of Rs. 6.5 crore would be detrimental to the society. After the present governing body had come to power, there was huge increase in tuition fee being collected by the college, he said adding that the college was still said to be in a crisis.