A media report on alleged fraud committed by top CPM leader Kodiyeri Balakrishnan's son triggered a major controversy in Kerala, with the Congress-led opposition demanding that Chief Minister Pinarayi Vijayan or the CPM leadership respond to the allegations, even as the ruling Left party denied there had been any wrongdoing.

According to a report in a leading vernacular daily, a Dubai-based company has approached the CPM politburo and alleged that Kodiyeri's son cheated them to the tune of Rs 13 crore last year. The allegations are regarding Binoy V Balakrishnan, the elder son of Kodiyeri, who is the CPM state secretary.

The company has told the CPM politburo that if they do not take steps to ensure that the money is returned, they will start legal proceedings in Dubai, including approaching Interpol.

Addressing reporters in the state assembly, Leader of Opposition Ramesh Chennithala said they want either Chief Minister or the party to respond to the media report. "We expect there will be a statement on it from either Pinarayi or the party," Chennithala said.

In Delhi, CPM general secretary Sitaram Yechury in response to questions on the report on Wednesday said they have not received any complaint on the issue, but failed to respond to queries if they will find out if the report is true.

State BJP general secretary K Surendran said the party has conducted its own probe and found out that "the news report is true" and they will pursue the matter. "The CPM clearly states that not just party workers but also their immediate family members should be above board. This should reach its logical conclusion," Surendran said.

The media report comes ahead of the CPI-M state party conference next month and the state assembly session that is about to begin. CM Pinarayi, who was in the assembly when TV channels started airing the news, later went to the state party headquarters and was engaged in closed-door discussions with CPM secretary Balakrishnan.

(With agency inputs)