Cooperative museum project hits a roadblock

Karassery Service Cooperative Bank delays International Cooperative Museum project due to financial constraints, seeking leasing options for building.

Financial constraints have forced the authorities of the Karassery Service Cooperative Bank to put the much-awaited project of the International Cooperative Museum (ICM) on the back burner.

Bank chairman N.K. Abdurahiman told The Hindu on Friday (June 6) that the bank was leasing out the 14-storey building near Arayidathupalam in Kozhikode that was especially constructed for the ICM.

Proposed to be the first of its kind in India and the second in the world (the first is in Toad Lane, U.K., set up in 1844), the ICM was envisaged as a destination to learn about India’s cooperative movement, which has a history of more than a century. It was supposed to feature the success and achievements of the notable cooperatives in India. The building was also supposed to house a wax museum and an art gallery.

The project was launched in 2016, but was delayed considerably due to several technical issues. The outer cladding of the building is already attracting crowds, though the interior works are yet to begin. However, the lack of funds has put a damper on the much-awaited project.

“So far, we have invested ₹80 crore in the project. We owe the Uralungal Labour Contractors’ Cooperative Society that constructed the building at least ₹8 crore more. At least ₹20 crore more is needed to complete the project, and the bank is currently not in a position to fund it,” said Mr. Abdurahiman.

He said the institution was unable to raise the required funds due to restrictions imposed on cooperative banks. “The cooperative banking sector is struggling. We are not allowed to attach properties even if the borrower did not repay the loans. We are surviving on gold loans alone,” Mr. Abdurahiman said, adding that the bank’s primary commitment was towards depositors and not the museum and hence did not want to invest more in the project.

The bank has now invited expression of interest to lease out the building. “We are not abandoning the ICM project. We will try to dedicate one floor of the building to it and lease out the rest. The project may be implemented in its entirety if we could raise the required funds,” he added.