The Kerala Vigilance and Anti-Corruption Bureau has recommended that a Central Bureau of Investigation probe be initiated against Leader of the Opposition V.D. Satheesan in connection with alleged violations of the Foreign Contribution Regulation Act linked to the Punarjani housing scheme. The scheme was launched to rehabilitate people affected by the devastating Kerala floods of 2018. According to official sources, the vigilance report has been submitted to Chief Minister Pinarayi Vijayan, and the matter is now before the state government, which has not yet taken a final decision on whether to proceed with a CBI investigation.
The recommendation has come at a politically sensitive time, just months ahead of the Kerala Assembly elections, prompting strong reactions from the Opposition. Satheesan’s party has alleged that the move is politically motivated and intended to tarnish the image of the Leader of the Opposition in the run-up to the polls. The vigilance bureau has cited alleged violations of the FCRA, claiming that foreign funds were collected abroad and later transferred to bank accounts in Kerala for the implementation of the Punarjani rehabilitation project in Satheesan’s Paravur constituency in Ernakulam district.
According to the vigilance report, the funds were allegedly mobilised through an organisation called the Manappattu Foundation. The report claims that an amount of GBP 22,500, equivalent to nearly ₹19.95 lakh, was raised from individuals in the United Kingdom. It further alleges that the money was routed to the foundation’s designated FCRA account through a UK-based non-governmental organisation named Midland International Aid Trust.
The vigilance bureau has also referred to a video purportedly showing Satheesan addressing a gathering in the UK and requesting attendees to contribute GBP 500 each. The funds, according to the report, were meant for purchasing weaving machines for women affected by the floods. On the basis of these allegations, the bureau has recommended a CBI probe under Section 3(2)(a) of the FCRA Act, 2010, which bars the acceptance of foreign contributions on behalf of political parties.
In addition to recommending a CBI investigation, the vigilance report has suggested that the Speaker of the Kerala Assembly initiate action against Satheesan under Rule 41 of Appendix II of the Assembly’s Rules of Procedure. The recommendation cites alleged violations committed by Satheesan in his capacity as a legislator, further escalating the political implications of the case.
Responding to the development, Satheesan strongly denied all allegations and questioned the legal basis of the vigilance recommendation. He dismissed the report as baseless and said it would not stand scrutiny under the law. Speaking to reporters, he maintained that the Punarjani project had been implemented with complete transparency and adherence to all legal norms, and that there had been no wrongdoing at any stage.
Satheesan also pointed out that the matter had been investigated earlier and subsequently dropped by the vigilance authorities themselves. He said the home department had also examined the issue, and that the case had been reopened and probed multiple times over the past four to five years based on fresh complaints. According to him, each inquiry had failed to establish any violation, reinforcing his confidence that the allegations would not hold up legally.
Linking the timing of the recommendation to the forthcoming Assembly elections, Satheesan suggested that the move was politically driven. He said that if a case was registered against him in January ahead of elections expected to be announced in early March, he was prepared to face it both politically and legally. He added that he had no objection to a CBI probe and would not seek any special treatment.
Senior Congress leaders came out in support of Satheesan, accusing the CPI(M)-led state government of using vigilance agencies as political tools. They claimed that previous inquiries had already cleared the Opposition leader of any wrongdoing and described the latest recommendation as an election-time tactic aimed at distracting voters.
The state government has so far not indicated whether it will accept the vigilance bureau’s recommendation and hand over the case to the CBI. A final decision is awaited, even as the issue continues to generate sharp political debate in Kerala.
