Kerala Anti-Corruption Bureau Closes Case Against Leader of Opposition Satheesan over Foreign Funds

The Kerala Vigilance and Anti-Corruption Bureau (VACB) has dropped its investigation into allegations that Leader of Opposition V. D. Satheesan collected funds from abroad in violation of the Foreign Contribution (Regulation) Act (FCRA) for a 2018 flood rehabilitation project.

Home Minister Ramesh Chennithala announced the closure, stating that the probe found no evidence against Satheesan. The case was originally registered under Section 7(a) of the Prevention of Corruption Act and had been ordered by the previous Left Democratic Front (LDF) government. Chennithala said the VACB director examined the files and recommended against further action, adding that the decision was not influenced by the change in government.

The probe, initiated in 2023 while Satheesan was Leader of Opposition, arose from a complaint by Jaison Panikulangara, a member of the Nitta Gelatin Action Council. Panikulangara alleged that Satheesan solicited donations for the 'Punarjani' project — a rehabilitation effort for flood victims in his constituency, Paravur — during a visit to the United Kingdom. The complaint included a video showing Satheesan seeking funds for the project, which was to be implemented by the Manappat Foundation, the corporate social responsibility arm of the Dubai-based Manappat Group.

Chennithala clarified that the funds were handled exclusively by the Manappat Foundation through its FCRA account, and Satheesan played no role in the financial transactions. The previous LDF government had recommended a Central Bureau of Investigation (CBI) probe into the matter, a move the Congress termed politically motivated, coming just months before the state elections. The CPI(M) had drawn parallels to the SNC Lavalin case, where a CBI probe was ordered against Pinarayi Vijayan in 2006.

The Punarjani project was conceived by Satheesan following the devastating 2018 Kerala floods to rehabilitate victims in Paravur. The controversy first surfaced in the Assembly in 2018, raised by CPI(M) legislator James Mathew. In 2020, the Kerala High Court dismissed a petition seeking a probe, citing lack of documentary evidence beyond the video clip. The court noted the petitioner had already approached the VACB.

The VACB probe order came in 2023 amid political tensions when the Congress-led United Democratic Front criticized then Chief Minister Pinarayi Vijayan over similar fundraising efforts for the Loka Kerala Sabha. The Enforcement Directorate also initiated a probe into Satheesan in May 2024 based on the same complaint, though its status remains unclear.