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The LDF convener has claimed the state's heavy debt was not a marker of poor governance.
He will join the procession in Thrissur and is slated to deliver a speech.
The unprecedented raid comes after the department received a complaint of money laundering in connection with the resort.
He had not participated in the inaugural function of the rally nor its tour of Kasaragod, Kannur, and Wayanad districts.
In a video that is doing the rounds, EP can be seen honouring Nandakumar's mother at a temple in Kochi on Sunday, a day before MV Govindan's people's rally got underway.
EP is likely to change his decision only if there is favourable action from the party leadership on the Kannur resort scandal.
CPM State Secretary M V Govindan, earlier today, clarified that no probe would be initiated by the party against Jayarajan to check the allegations of financial impropriety against him.
E P Jayarajan had spoken emotionally in the CPM state committee meeting while replying to the charges earlier raised by senior leader P Jayarajan.
E P gave the reply to the allegations against him in the state committee meeting while acting on the direction of the party state Secretariat.
P Jayarajan, who raised the allegation at the last state committee, will also face enquiry.
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