Punarjani project: With ED probe stalled, what options does CBI have against Kerala LoP Satheesan?

Kochi: The Enforcement Directorate (ED) probe against Leader of the Opposition V D Satheesan in connection with the Punarjani project, under which houses were built for flood-affected families, remains stalled. The ED had conducted only a preliminary inquiry. After recording detailed statements from the complainants and carrying out a probe that lasted nearly two years, the agency failed to find any evidence.

The ED inquiry apparently followed the footsteps of the vigilance investigation. However, as the vigilance report pointed to the absence of incriminating evidence, the ED could not register a case under the Prevention of Money Laundering Act (PMLA). The only remaining scope for inquiry was under the Foreign Exchange Management Act (FEMA). That possibility too has been ruled out, as no money was directly credited to Satheesan’s account.

The only option left is a probe by the Central Bureau of Investigation (CBI) under the Foreign Contribution (Regulation) Act (FCRA). Even under this provision, a case cannot be registered against Satheesan. The investigation, if any, can only be against the Manappattu Foundation, which received foreign assistance. If the CBI registers a case, the ED may then file an Enforcement Case Information Report (ECIR) based on it to examine whether any money laundering took place.

Probe possible over approvals

Any form of foreign assistance requires permission from the Ministry of External Affairs and the Reserve Bank of India. No investigation has so far examined whether central approval was obtained to collect foreign funds for building houses for flood victims.

The authority to investigate FCRA violations rests with the CBI. Complainant Jaison Panikulangara said he had received a reply under the Right to Information Act stating that Satheesan had not obtained central approval to receive foreign funds for the Punarjani project.