Thiruvananthapuram: The Kerala Vigilance and Anti-Corruption Bureau (VACB) has found no evidence against Chief Minister V.D. Satheesan in connection with allegations of irregularities in the Punarjani flood rehabilitation project and has decided to close all proceedings in the case, Home Minister Ramesh Chennithala announced on Thursday.

Speaking to reporters, Chennithala said the decision was taken based on a report submitted by the VACB Director after a detailed investigation into the case.

According to the Home Minister, the vigilance probe did not find any material linking Satheesan to alleged violations of the Foreign Contribution (Regulation) Act (FCRA) or any other financial irregularity connected with the Punarjani project, which was implemented in Satheesan's Paravur constituency years ago.

"The chief minister was not directly involved in any financial transaction, nor did the probe find any evidence against him. The decision was taken based on the report of the VACB director," Chennithala said.

The allegations were related to the Punarjani rehabilitation initiative launched to build houses for families who lost their homes in the devastating 2018 Kerala floods.

Chennithala said he had personally examined the report submitted by the Vigilance Director before concluding that there was no basis to continue the case. He also alleged that the CPM had repeatedly used the case as a political tool to target Satheesan during his tenure as Leader of the Opposition. He further alleged that the previous LDF government had decided to recommend a CBI probe into the matter for political reasons.