InDepth | What Allegations of Corruption Against Pinarayi Vijayan Mean for Party's Future

A spectre is haunting Europe—the spectre of communism.” Thus begins the Communist Manifesto, perhaps the most read political thesis of modern times. In Keralam, where communism is a major influence on social and political life, however, the story appears to have taken an ironic turn. The state that still boasts one of the most formidable communist organisations in the country—the Communist Party of India (Marxist)—now finds itself besieged by a different set of spectres: an electoral debacle, an Enforcement Directorate (ED) investigation involving the family of its most powerful leader and a growing moral and political crisis within the party.

“Serious Fraud Investigation Office investigations revealed that fictitious cash expenses of Rs 182 crore were made by Cochin Marines and Rutile [CMRL] over a period of 15 years and allegedly used for bribing various persons. One of the fake expenses booked by CMRL was towards a payment to Veena, daughter of former Keralam Chief Minister Pinarayi Vijayan,” the ED said in a statement. The ED alleged that CMRL paid Exalogic Solutions—the information-technology (IT) company Veena owns—Rs 2.78 crore, ostensibly for IT consultancy services, but no corresponding services or work products were actually provided. The agency has also questioned a separate Rs 50 lakh loan extended to Exalogic by Empower India Capital Investments, operated by CMRL managing director S.N. Sasidharan Kartha.

Until recently, Vijayan was hailed by cadres and comrades alike as a larger-than-life leader who had transformed the party and the government in his image. The CPI(M’s) electoral drubbing in the state had triggered an uncomfortable debate over his style of functioning and leadership. The ED case has added another layer to the party’s troubles, forcing it to confront questions of political credibility and moral authority.

Shifting Mood within CPI(M)

At a recent leadership meeting, the shifting mood within the CPI(M) was starkly visible. In an ironic echo of Marx’s observation that history repeats itself, first as tragedy and then as farce, some of those who once celebrated Vijayan in almost unquestioning terms were now holding his leadership responsible for the party’s troubles. Some leadership changes were made to revitalise the party but the image problem still persists.

For years, Vijayan cultivated—or was credited with cultivating—an image of political invincibility. He survived factional battles within the party, secured an unprecedented second consecutive term as chief minister and appeared to exercise a degree of authority over the organisation that few could challenge. The electoral rout has shaken that perception. The mounting allegations of corruption in financial dealings surrounding his daughter, and son-in-law and former minister Muhammad Riyas have now further eroded the political authority that once seemed unassailable. Leaders who once competed to sing his praises are increasingly resorting to veiled criticism and pointed innuendos against him.

The question the CPI(M) faces now is no longer merely about how to recover from an electoral defeat. It is whether a party that has for years revolved around one dominant and ageing leader can handle the political and organisational consequences of his weakening authority.

The ED’s investigation has widened. It has alleged that handwritten accounts seized during its searches contain details of money transfers to Dubai amounting to about Rs 85 lakh, which the agency is examining as a possible hawala trail. The ED’s decision to write to the Keralam director general of police seeking registration of a fresh case against Vijayan, Veena and Riyas has created an unusual political dilemma for the Congress-led government. The agency has shared the findings of its Prevention of Money Laundering Act investigation and sought a separate first information report under the Prevention of Corruption Act.

The CPI(M) has rejected the allegations and accused the ED of targeting Veena and sought to fight this “politically and legally”, but after the Left’s electoral defeat, as questions about Vijayan’s style of functioning contributed to the defeat, the response to the allegations also appeared to change. Some leaders who had earlier been strongly defending Vijayan and his family appeared increasingly cautious about defending them in public.

“The Central agencies have been trying to target the CPI(M), and we will continue to resist the weaponisation of the investigating agencies by the government” says CPI(M) state secretary M.V. Govindan.

The Congress has been among the strongest political opponents of what it describes as the Narendra Modi government’s misuse of the ED against its political adversaries. In Keralam, the party must now decide whether to act on an ED recommendation against its principal political opponent, Vijayan.

“The allegation of hawala transactions involving Veena and Riyas is potentially more serious than the allegations relating to Vijayan himself,” says political analyst M.P. Basheer. “The Congress government cannot sit on the ED’s recommendation indefinitely as that could raise questions about its credibility. Therefore, despite the Congress’ criticism of Central investigative agencies, it may ultimately have to act on the ED’s recommendation and proceed with the case involving Vijayan, Veena and Riyas.”

The delay in acting on the ED’s recommendation has also come under criticism from the BJP. “If the alleged hawala transactions are investigated further, the Congress may be apprehensive that leaders of its own front could also come under scrutiny,” says BJP leader Shone George.

Will the Party Bounce Back?

The CPI(M) has a history of bouncing back from electoral defeats, often using setbacks to reassess its strategy and rebuild its organisation. But the current challenges are more complex. The BJP’s emergence as a serious political force in Keralam, the lack of an obvious successor to Vijayan and allegations surrounding a leader who has dominated the party and government for years all together make this crisis particularly difficult to navigate.

At the recently concluded state committee meeting, the CPI(M) made changes to its highest decision-making body in Keralam, the state secretariat, in an apparent attempt to respond to the crisis. But political observers say that organisational changes alone may not be enough to address its deeper problems. “These are merely ornamental changes and will not be sufficient to revitalise the party. The crisis is multifaceted—it includes the electoral debacle, questions of political credibility and the moral deficit highlighted by the ED case involving Vijayan,” says writer and political analyst N.P. Chekkutty.

Though CPI(M) leaders remain confident of a Left revival, the multiple crises confronting the party remain difficult to ignore. If these problems persist and begin to erode the party’s organisational and electoral bases, they could alter Keralam’s traditionally bipolar political landscape. This shift could create more room for the BJP to expand its presence in the state and emerge as a more consequential force in Keralam’s politics.

N.K. Bhoopesh is a senior journalist based in Keralam