Kerala opposition leader VD Satheeshan | Photo credit: H VIBHU
The Kerala VACB has recommended a CBI probe against Leader of Opposition in the state Assembly VD Satheesan over alleged irregularities in collection of funds from abroad in connection with a rehabilitation project titled ‘Punarjani’, official sources said on Saturday.
The Vigilance and Anti-Corruption Bureau (VACB) report with the recommendation has been submitted to Chief Minister Pinarayi Vijayan, it said.
According to the report, the vigilance department has sought a CBI probe into alleged violations of the Foreign Contribution Regulation Act (FCRA).
It pointed out that Satheesan traveled abroad after getting permission from the central government for a private visit and allegedly collected funds abroad which were later transferred to accounts in Kerala.
Reacting to the development, Satheesan said he would fight the issue personally and politically. The vigilance report recommends a CBI probe under Section 3(2)(a) (which prohibits any person resident in India or any Indian citizen residing abroad from accepting foreign donations on behalf of any political party) of the FCRA Act 2010, sources said.
It has also recommended that the Speaker of the Assembly initiate action against the LoP under Rule 41 of Schedule II of the Standing Orders of the Assembly citing alleged violations of law committed by him in his capacity as a legislator.
According to VACB’s findings, funds were collected from abroad by setting up a foundation called Manappattu Foundation for the ‘Punarjani’ project. The report said that ₹22,500 (worth around Rs 19.95 lakh) was collected from various people in the UK and transferred to the foundation’s account.
The money was channeled into the foundation’s FCRA account through a UK-based NGO, Midland International Aid Trust (MIAT), VACB said.
The vigilance agency has also probed a video in which Satheesan was allegedly seen asking participants at an event in the UK to donate ₹500 each for the purchase of weaving machines as part of the rehabilitation of women affected by the floods, sources added.
Meanwhile, top leaders of the Congress party stood behind Satheesan by expressing their strong support and opposed the government’s move to make a recommendation for the central agency’s probe. They claimed it was an attempt to keep an eye on the upcoming general elections.
As AICC general secretary KC Venugopal termed the move a political ploy by the CPI(M)-led regime, KPCC president Sunny Joseph said it was a futile attempt as the state vigilance agency had found nothing against Satheesan in its earlier probe into the same allegations.
Senior leaders Ramesh Chennithala, K Muraleedharan, Benny Behannan and Shanimol Uzman also sharply criticized the Pinarayi Vijayan government over the vigilance recommendation.
When reporters asked for his reaction to the development in Wayanad, Satheesan said he would fight the issue personally and politically.
The LoP also said that he did not require any special consideration or favor in the case and that he had no problem with the CBI probing the matter.
“I am confident that the case will not stand legally. If there is an intention to continue proceedings against me in January, when the elections are expected to be announced in March, then let it happen. I will counter it politically and legally,” he said.
He said the Vigilance itself had previously closed the case after thorough investigation and investigators could not find any evidence against him. He claimed that even some investigators themselves told him that they could not find anything against him in their investigations.
“There are several reports from investigating officers in this matter. What the investigating officers told me is something that I still remember with pride. I will neither demand that the case not be handed over to the CBI nor will I ask the chief minister to help me,” he said.
Accusing the state government of deliberately indulging in the issue while the general elections were around the corner, the LoP also said the government can do whatever it wants and he will take legal and political action against it.
Published on January 4, 2026