Thiruvananthapuram, 30 July (H.S.):

The Kerala Vigilance and Anti-Corruption Bureau (VACB) has formally closed its long-running probe into alleged irregularities in the Punarjani housing scheme, with Home Minister Ramesh Chennithala announcing on Thursday that Congress leader and Leader of the Opposition V.D. Satheesan has been given a clean chit.

Chennithala said he had personally examined the files submitted by the Vigilance Director and was satisfied that there were no grounds to continue the proceedings. He maintained that repeated investigations had failed to uncover any evidence linking Satheesan to financial irregularities in the scheme.

The allegations related to the Punarjani housing initiative, which was launched to rehabilitate families affected by the devastating 2018 Kerala floods. The VACB investigated the matter in 2020, 2023 and 2025, but each inquiry concluded without finding evidence of corruption or misuse of funds by Satheesan.

Investigators were unable to invoke provisions of the Prevention of Corruption Act due to the absence of material evidence. The probe later examined possible violations of the Foreign Contribution (Regulation) Act (FCRA), but officials found that the funds had been transferred directly to the implementing non-governmental organisation and not to Satheesan's personal accounts. The agency had also recommended that the investigation be handed over to the Central Bureau of Investigation (CBI), but no further action was taken.

Rejecting suggestions that the decision was politically motivated, Chennithala said there had never been any evidence against Satheesan. He asserted that the closure of the case was based solely on the findings of the vigilance investigations.

The closure of the case is expected to provide political relief to Satheesan, as the allegations had frequently been raised by the Left Democratic Front (LDF) in its political attacks on the Congress leader. The Congress has consistently maintained that the case was politically motivated and intended to tarnish Satheesan's image, particularly in the run-up to the Assembly elections.

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Hindusthan Samachar / Arun Lakshman