Kodakara hawala case returns to haunt BJP ahead of Kerala bypolls

In a significant twist to the 2021 Kodakara hawala case, involving BJP leaders, fresh allegations by a former BJP official have put the party under scrutiny just ahead of the state by-elections.

Tirur Satheesh, a former office secretary of the BJP in Thrissur, has come forward with claims that have reignited the controversy surrounding the Kodakara heist. According to Satheesh, the stolen hawala money, which was seized during a highway robbery in April 2021, was intended to fund BJP’s campaign for the state Assembly elections. The claim has stirred a debate in Kerala’s political circles and raised questions about the flow of unaccounted money into election campaigns.

The Kodakara heist took place on April 3, 2021, when a car carrying a substantial amount of hawala money was intercepted on National Highway 544 in Thrissur. Initially, the Kerala police received a report of a robbery involving Rs 25 lakh, but further investigations revealed that it was actually a sum of Rs 3.5 crore. The money was reportedly being transported by Dharmarajan, alleged to be an RSS worker, who was transferring the funds on behalf of certain BJP affiliates.

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Funds meant for BJP campaign?

Satheesh claimed that he had arranged accommodation for Dharmarajan and his associates at a local hotel in Thrissur on April 2 following instructions from the BJP’s district treasurer.

Dharmarajan reportedly transported the hawala money to the BJP district office in Thrissur before the robbery took place while the remaining amount was being moved to Alappuzha. According to Satheesh, the funds were intended to finance BJP’s election campaign, suggesting a larger operation to funnel unaccounted money into state elections.

As the allegations gained media attention, BJP’s Thrissur district president KK Aneeshkumar refuted Satheesh’s statements. He claimed that Satheesh was expelled from the party due to financial misconduct and alleged that the CPI(M) had influenced him to make these accusations.

“Satheesh’s claims are baseless. Every time there is an election in Kerala, the Kodakara hawala case is dug up to tarnish BJP’s image. This is just another instance of that,” Aneeshkumar said.

Kerala BJP refutes charges

On the other hand, BJP state president K Surendran dismissed the charges, saying that there is nothing that can link the BJP to the hawala case. “I am a defendant in 346 cases but has never challenged the law in any of them. In this case, central agencies would need evidence if they are to investigate,” said Surendran. He also claimed that these allegations were instigated by Rahul Mankootathil, the UDF candidate of Palakkad.

Tirur Satheesh’s claims, however, have amplified calls from political opponents and public interest groups for a thorough investigation into the heist and its ties to political financing. Many have also demanded that the Enforcement Directorate (ED) should step in to provide more clarity and transparency in handling the case.

The case has been under investigation for over two years, but with little tangible progress. Initially, the Kerala police filed a detailed chargesheet in connection with the heist, naming 22 accused in the highway robbery. They handed over the case to the ED for further investigation, as it involves suspected money laundering and hawala transactions. Despite the ED’s involvement, the case has since made no headway, with no new arrests or developments, raising questions about the agency's commitment to transparency and accountability.

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ED probe questioned

Critics argue that the delay in investigation signals selective enforcement by the ED, favouring the ruling party at the Centre while targeting opposition groups.

“The ED is responsible for further investigation into the money laundering and its sources. However, despite the police handing over the case to the ED years ago, the agency has not yet pursued further investigation, identified the sources, or arrested anyone involved. To this day, there have been no new arrests or interrogations by the ED in the Kodakara money heist case, effectively giving BJP a cover,” alleged Dr TM Thomas Issac, former finance minister and CPI(M) central committee member.

“The central agencies repeatedly target CPI(M) officials linked to the Kerala Infrastructure Investment Fund Board (KIIFB), often disrupting the state’s development initiatives.” Issac asserts that these actions serve to undermine state institutions while distracting from larger issues, such as the Kodakara case.

Link with electoral bonds

Beyond the heist itself, questions have arisen regarding the potential connection between black money seized in the Kodakara case and the funds received through electoral bonds. Electoral bonds, which allow anonymous donations to political parties, have faced criticism for their opacity and potential to facilitate unaccounted political donations.

The former finance minister has demanded that the BJP should come clean on the source of its substantial funding received through electoral bonds and how these funds have been allocated. “The BJP is laundering black money through electoral bonds and then re-converting it into black money,” Issac alleged, stating that this approach effectively removes any accountability regarding election funding.

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BJP-CPI(M) deal: Congress

However, Leader of Opposition VD Satheesan claimed that a longstanding “deal” between the BJP and CPI(M) has now been exposed. Addressing reporters in Kozhikode, Satheesan asserted that former BJP office secretary Tirur Satheesh’s revelations have only strengthened allegations by the Congress of a covert understanding between the two parties.

Satheesan pointed out that the Kerala police investigation into the 2021 Kodakara money heist, in which Rs 3.5 crore in alleged hawala funds were stolen, deliberately omitted key details. “The police conveniently concealed critical information about the origin and destination of the money,” he said, suggesting that this selective reporting indicates an effort to protect certain interests.

‘Political weaponisation’ of agencies

Tirur Satheesh’s allegations, whether substantiated or not, have triggered an intense debate about political financing and the central agency’s impartiality. Many argue that central investigative agencies like the ED are being selectively utilised to disrupt Opposition activities and intimidate political opponents.

The Congress and CPI(M) parties have condemned what they call a “political weaponisation” of central agencies, citing instances where Opposition leaders were either targeted or imprisoned while similar accusations against the BJP go unaddressed.

While BJP’s leaders dismiss the allegations as “electoral mudslinging,” public discontent is growing over what many term “lopsided enforcement of the law”.