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Central government sources told Outlook that while there is certainly a case worth investigating, the CPI(M)'s accusation on the "politically motivated" timing of it is equally true. "You can't frontally attack the Congress at every opportunity and then," said these sources, "hope for a friendly cover-up". The key issue relates to the contractual promise made by SNC-Lavalin—as an aside to the CPI(M)—to give Rs 98 crore to finance a cancer hospital in Malabar, which it apparently reneged on, giving only Rs 8.98 crore. The Congress alleges the company did deliver the rest of the money but it ended up in the CPI(M)'s party coffers.
Given the pace and tenor of investigations into instances of corruption, the CPI(M) may well have succeeded in riding the scam. Unfortunately for them, their own chief minister, V.S. Achuthanandan, who has been engaged in a bitter ideological and political battle with Pinarayi for many years now, has refused to toe the central line. Humiliated by the party—which has ensured that his cabinet is packed with Pinarayi loyalists who in turn miss no opportunity to embarrass him—he has reportedly presented the leadership with a 302-page document. The document includes the state Comptroller and Auditor General's indictment that the state had lost Rs 374.5 crore in the deal, the Balanandan committee report which had recommended that the renovation/modernisation of the three power plants in Kerala be given to Bharat Heavy Electricals Ltd, rather than to the Canadian conglomerate SNC-Lavalin; and the State Vigilance and Anti-Corruption Bureau's chargesheet against eight officials in the deal. This is to demonstrate that he cannot bypass the CBI's request and retain his credibility with the masses (indeed, Achuthanandan was made CM because of the widespread grassroots support he enjoys, rather than to the traditionalist position he clings to). Complicating the situation is a letter purportedly written by the late party veteran E. Balanandan in 2005 warning the CPI(M) leadership about the implications of the SNC-Lavalin deal (the CPI(M) denies any such letter). "Let us not forget," a sympathetic central committee member told Outlook, "that the CM is not just a partyman. ..he is also a constitutional authority. Now that the CBI has asked the governor for permission to prosecute Pinarayi, the issue has to be discussed by the cabinet. It would not be proper for him to take a position as yet." But he also admitted the stand-off was embarrassing the party and he'd rather not speculate on the outcome.
It is this battle that will be played out on February 14, when the CPI(M) politburo meets in Delhi to try and resolve the long-running war between the two men. Top sources in the CPI(M) indicated to Outlook that Achuthanandan would be asked to toe the party line. Asked what the party would do if he refused to oblige, the reply was: "We don't think that will happen." But long-time CPI(M) watchers are not so sanguine: they say given the hard position Achuthanandan has taken, he might find it hard to retract—in which case his exit cannot be ruled out. And that will certainly give the Congress some fodder for its 'Save Kerala' campaign. "Transparency in public life is the most important issue here," state Congress chief Ramesh Chennithala said recently, adding, "Unfortunately the CPI(M) is trying to shield the culprits...we'll expose them to the people."

If the news from Kerala is giving the party sleepless nights, the news from West Bengal isn't very promising either. The Opposition Trinamool Congress is using the Kerala case to hit out at the CPI(M) in the state. "There are several NGOs here benefiting financially because of their proximity to members of the ruling Communist Party," TMC leader Partho Chatterjee alleged to Outlook, adding that "these need to be investigated. If the CBI can chargesheet a CPI(M) secretary in Kerala for corruption, why shouldn't they do the same in West Bengal?"
He cites the case of central committee member Nilotpal Basu who had reportedly taken bank loans for his NGO, GRASSO, but failed to pay back, and Tamluk MP Lakshman Seth who leased out 37 acres of land in the heart of the industrial town of Haldia to the Indian Centre for Advancement of Research and Education (ICARE), an NGO run by him, for as little as one rupee an acre. Basu, when contacted, said, "I am chairman of an NGO which tries to facilitate employment in the telecom sector. Initially, it worked well, but later our business model failed when the CDMA platform was replaced by GSM technology. We are now in the midst of negotiations with the bank on how to resolve the matter." Other NGOs too have come in for opposition ire. They include Suchetana, run by CM Buddhadeb Bhattacharya's daughter, and Pather Panchali, run by transport minister Subhas Chakraborty's wife Romola.
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