Kodakara hawala case: How ED's clean chit to BJP has pitted CPI(M) against Union govt

The filing of a chargesheet by the Enforcement Directorate (ED) in the Kodakara hawala case in Kerala, virtually granting a clean chit to the BJP, has ignited a fresh war between the ruling CPI(M) and the Union government.

Far from being an isolated dispute over the 2021 cash heist, the standoff reflects a larger struggle over institutional autonomy and the alleged weaponisation of central agencies.

As the ED knocks on the doors of CPI(M) leaders over issues like the Karuvannur Cooperative Bank scam, the party has seized on the Kodakara case to argue that the ED pursues double standards: ruthless pursuit of Opposition figures but leniency toward the Bharatiya Janata Party (BJP).

Also read: Kodakara money laundering case: ED shielding BJP leadership, says K Suresh

Money haul and BJP

The Kodakara hawala case erupted during the 2021 Assembly elections when police intercepted a vehicle in Thrissur, uncovering crores of rupees stashed in sacks.

The car and Rs 3.56 crore were stolen by a gang at Kodakara in Thrissur district. The Kerala police spearheaded the initial probe, alleging that the cash was illicit election funding tied to the BJP.

Witness statements, notably from former BJP Thrissur office secretary Tirur Satish, painted a damning picture: six sacks of unaccounted money moved under party directives, with alleged links to state president K Surendran. Call records and the timing -- just days before the election -- bolstered claims of electoral malfeasance.

ED 'magic' and BJP

The police report urged deeper scrutiny, positioning the case as a test of political transparency.

Enter the ED, whose chargesheet tells a radically different story. The agency recasts the incident as a simple highway robbery, claiming Rs 3.56 crores were stolen from a driver transporting cash for a land deal orchestrated by businessman Dharmajan.

Gone are mentions of BJP leaders or electoral motives -- details central to the Kerala police findings. This divergence has handed the Communist Party of India (Marxist) a potent weapon.

Marxists blast ED

“The ED’s report is a whitewash to shield the BJP,” CPI(M) state secretary MV Govindan declared in Thiruvananthapuram, pointing to the agency’s omission of Satish’s testimony and its failure to probe the BJP figures named in the police investigation.

“The Kerala police traced a trail to the BJP but the ED erased it. This isn’t justice -- it’s a political fix,” Govindan added.

The CPI(M) frames this as part of a broader pattern of bias. While the ED has frozen CPI(M)-linked accounts and summoned leaders like former minister AC Moideen and Alathur MP K Radhakrishnan over the Karuvannur scam, it's handling of the Kodakara case suggests favouritism toward the BJP.

Police scrutiny of ED

Govindan contrasted the agency’s vigour against the Left with its apparent reluctance: “When it’s us, the ED pounces. When it’s the BJP, the case evaporates. Kodakara is proof.”

Also read: Kerala black money case: BJP should change party symbol to sack, says CPI(M)

Legal observers echo this unease. “We built a case on witness accounts and timing. The ED’s robbery narrative sidesteps that evidence, raising doubts about its impartiality,” said an officer who was a part of the initial investigation team of the Kerala Police.

ED defends itself

ED sources, speaking off-record, countered: “We followed the evidence we had. No credible political link emerged.”

The Kerala police report, grounded in local context and witness accounts, clashes with the ED’s narrower focus, which critics argue conveniently absolves the BJP.

The ED’s reliance on Dharmajan’s uncorroborated land-deal claim, while ignoring Satish’s statements and the election timing, invites skepticism about its motives.

Harassing CPI(M)

For the CPI(M), this isn’t just about one case -- it’s a rallying cry against perceived central overreach, a narrative likely to gain traction as Kerala eyes the 2026 elections.

The Enforcement Directorate’s submission of a chargesheet exonerating the BJP coincides with its failure to file an additional chargesheet in the Karuvannur cooperative bank scam case, leading to the release on bail of all the accused who had been in jail for the past one and a half years.

Yet, the agency remains focused on summoning CPI(M) leaders, including K Radhakrishnan. CPI(M) leaders view this as an attempt to keep the case alive, with the local body and Assembly elections approaching.

This clash transcends Kodakara and Karuvannur, tapping into Kerala’s fraught relationship with the BJP-led Centre. The CPI(M) has long accused the Union government of using agencies like the ED to target Opposition-ruled states, a charge amplified by cases like Karuvannur, where the party faced intense scrutiny.

Kodakara, however, flips the script -- here, the CPI(M) casts itself as the wronged party, exposing what it calls the ED’s “Janus-faced” nature.

Congress slams ED

The BJP, meanwhile, brushes off the accusations. Surendran, speaking in Thrissur, labelled it “CPI(M) propaganda to mask their failures,” insisting that the ED’s work is independent.

The Congress, on the other hand, while criticising the Enforcement Directorate (ED) alleged a nexus between the BJP and the CPI(M).

Leader of Opposition VD Satheesan stated: “The ED has destroyed its credibility with the report in the Kodakara hawala case. Nothing that was in the earlier police report is in the ED report. The ED has been cleanly saving the leaders of the ruling party at the national level. The ED, which is hunting down Opposition political leaders, has cleanly saved the BJP leaders in Kerala.”

Also read: Kodakara hawala case returns to haunt BJP ahead of Kerala bypolls

Kerala standoff

He further alleged that the CPI(M) was colluding with the BJP in corruption cases. “The cases filed by the Central government against CPI(M) leaders and the police cases against BJP leaders are going to end soon. It is yet to be seen whether central agencies would help the CPI(M) in the Karuvannur cooperative bank case,” he added.

The standoff also highlights the ED’s precarious role in India’s polarised polity. Its actions in Kerala -- aggressive against the CPI(M) and lenient toward the BJP -- mirror national trends where Opposition parties routinely decry it as a BJP tool. Whether the Kodakara chargesheet reflects bias or a legitimate divergence in evidence, its political fallout is undeniable.

For the CPI(M), it’s a chance to mobilise outrage and reclaim moral ground; for the Union government, a test of its ability to weather accusations of institutional capture.