Petition moved in Kerala High Court challenging clean chit to Chief Minister in Punarjani flood rehabilitation scheme

Lawyer K.M. Shajahan has moved the Kerala High Court challenging a Vigilance and Anti-Corruption Bureau (VACB) report closing preliminary enquiry and dropping corruption charges against Chief Minister V.D. Satheesan in connection with the Punarjani flood rehabilitation scheme. 

Justice C. Jayachandran is likely to consider the matter on November 16.

The initial preliminary inquiry report by the VACB stated that Mr. Satheesan took a private trip to the United Kingdom in October 2018 and used a lunch meeting in Birmingham to actively solicit and collect foreign funds for the Punarjani Scheme, the petitioner said. He added that the enquiry officer had noted suspicious financial movements totalling over ₹1.22 crore distributed across the current and personal bank accounts of Manappat Foundation chairman Ameer Ahammed.

The petitioner claimed that this report was suppressed, and the proceedings against the Chief Minister were closed, concluding that there was no legal ground or evidence tying him directly to fund collection, handling, or administration. He quoted the VACB’s final report that the money was verified to be fully managed and processed through legal, audited and Foreign Contribution (Regulation) Act (FCRA)-compliant banking channels of Manappatt Foundation.  

The petitioner alleged that the first preliminary inquiry report found clear evidence of wrongdoing and recommended a Central Bureau of Investigation inquiry, but then another report was produced on May 5, 2026, after which the Vigilance Director had closed the file, allegedly stating that there was “no vigilance angle”.

He claimed that the United Democratic Front (UDF) had won the Assembly elections, and that Mr. Satheesan was proposed as a candidate for the Chief Minister post on May 4, and the second report was prepared immediately, clearing him of all charges. He sought an interim direction seeking the production of communication between VACB officers in a sealed cover.

The petitioner further alleged that the probe had flagged the fund transfers as a conspiracy to bypass Central regulations because the funds were routed through the FCRA-registered account of Manappat Foundation with the help of the UK-based Midland International Aid Trust.

Published - November 14, 2026 07:00 am IST