The Vigilance and Anti-Corruption Bureau (VACB), which probed alleged irregularities in the Punarjani housing scheme thrice and found no evidence against V D Satheesan, has eventually concluded the proceedings. Home Minister Ramesh Chennithala, on Thursday, formally declared that Satheesan has been given a clean chit.

As per the complaint, there were large scale irregularities in fund utilisation for the housing initiative titled 'Punarjani scheme' launched by Satheesan to rehabilitate people affected by 2018 floods.

The UDF has, in effect, put a lid on the CPM's persistent attempts to taint Satheesan by constantly dragging him to Punarjani scheme, even though the investigating agencies failed to come up with any plausible evidence. With Chennithala himself announcing closure of case against Satheesan, the Congress also projected a cohesive unit, something which the CPM had attempted to crack by casting doubts on Satheesan. In the run-up to the elections, the CPM amped up the smear campaign against Satheesan by levelling allegations of his links with the RSS and his role in the housing scheme fraud.

Chennithala said he personally went through the files submitted by the Vigilance Director and was convinced that there was no need to proceed with the case. When asked if the decision would be construed as political, Chennithala responded that there had never been an iota of evidence against Satheesan. The CPM had frequently weaponised the case to neutralise Satheesan, when he was the Opposition Leader. The LDF countered corruption charges in LIFE mission scheme with Punarjani scheme, effectively sowing doubts in the Congress camp.

The VACB had investigated the case in 2020, 2023 and 2025. When it failed to apply the provisions under the Prevention of Corruption Act, the CPM-led government had come up with violations of Foreign Contribution Regulation Act (FCRA). Even then, the agency hit upon a stumbling block as the funds were directly transferred to the NGO and not a single pie was received by Satheesan in his account. This impeded the VACB from proceeding with the probe and the agency had recommended entrusting the investigation with the Central Bureau of Investigation.

"It was all politically motivated, it is clear now," Chennithala told reporters.