ED raids former Kerala CM Pinarayi Vijayan’s houses in CMRL pay-off case

New study urges Kerala govt. pursue measures to improve revenue mobilisation, expenditure efficiency

As Kerala awaits the UDF government’s white paper on State finances, a new study has suggested that the government should actively pursue measures designed to broaden the tax base, optimise non-tax revenue mobilisation and improve tax compliance while building on the State’s structural strengths to boost the economy.The study, ‘Kerala Fiscal Consensus Forum 2026-31 - a non-partisan academic initiative,’ prepared by the Department of Commerce, Sacred Heart College, Thevara, urges the government to explore avenues such as ‘Kerala Diaspora bonds,’ and - in the case of local bodies - municipal bonds. Further, the government should explore fee revision exercises across departments to increase non-tax revenues, user charges for higher-end government services and asset monetisation to up the State’s revenues.Observing that Kerala stands at a ‘critical fiscal inflection point,’ it states that “The most fundamental long-term remedy for Kerala’s fiscal deficit is substantially enhancing own revenue mobilisation. Kerala ranks among the lowest States in own-tax revenue as a percentage of GSDP, despite being one of the highest in per capita private consumption expenditure.” The study envisions ‘Kerala diaspora bonds’ as tax-efficient, RBI-compliant instruments through which NRIs can invest directly in specific infrastructure or social projects.The document was handed over to Chief Minister V.D. Satheesan recently, Tessa Mary Jose, Dean, Department of Commerce, said.The ‘single largest structural driver’ of Kerala’s fiscal deficit, according to the study, is the disproportionate share of committed expenditure, salaries, pensions and interest payments in its total revenue expenditure. “In 2024-25, Kerala’s committed expenditure amounted to ₹97,978 crore, which is approximately 71% of its estimated revenue receipts,” it notes.In revising fees to enhance non-tax revenues, the priority sectors can be ports and registration, building permits, mining levies and forest produce, the study suggests. Likewise, user charges can be levied for higher-end government services, such as Supplyco premium outlets, higher-grade hospital rooms and specialised skill training.In the case of debt management, the study observes that public debt, including on-balance-sheet borrowings and the off-balance-sheet exposure through Kerala Infrastructure Investment Fund Board (KIIFB), calls for a “coherent and transparent medium-term management strategy.” It recommends an independent review of KIIFB-funded projects and the formation of a State Debt Management Office within the Finance Department. Further, the Kerala Fiscal Responsibility Act should be amended to incorporate KIIFB and other off-budget vehicles within the definition of fiscal deficit for FRBM compliance purposes, in line with evolving national best practices, it says.The study also suggests measures for tapping the full potential of the MSME and manufacturing sectors, tourism, knowledge economy and digital services. Published - May 27, 2026 06:55 pm IST

New study urges Kerala govt. pursue measures to improve revenue mobilisation, expenditure efficiency

ED raids on Pinarayi Vijayan: CPI(M) says will resist politically and legally; party workers protest across Kerala

Protests outside the residence of Opposition Leader and former Kerala Chief Minister Pinarayi Vijayan in Thiruvananthapuram against the ED raids on Wednesday (May 27, 2026).

| Photo Credit: Nirmal Harindran

Communist Party of India (Marxist) [CPI(M)] workers came out on the streets across Kerala on Wednesday (May 27, 2026) to protest against the Directorate of Enforcement’s (ED) raids on the houses of former Kerala Chief Minister and CPI(M) Polit Bureau member Pinarayi Vijayan. Even as the raid was ongoing at his residence in Thiruvananthapuram, party workers gathered in large numbers raising slogans against the Bharatiya Janata Party-led Union government and the ED.Addressing a press conference here, CPI(M) State Secretary M.V.Govindan said that the raids are “the latest instance of a planned attack” against the CPI(M) by the Sangh Parivar and the Rashtriya Swayamsevak Sangh (RSS). The party will strongly resist such attempts politically and legally, with the support of the masses, he said.The raids are part of the long-running inquiry into whether Mr. Vijayan’s daughter and former IT consultant, T. Veena’s now-defunct firm, Exalogic, had received sizeable monthly retainers from Cochin Minerals and Rutile Limited (CMRL), a private mining company, during the 2017-2021 period allegedly without rendering any tangible service.Mr. Govindan said that several Central agencies, including the Income Tax department, Serious Fraud Investigation Office (SFIO) and the ED had carried out investigations in the past. The High Court as well as the Supreme Court had in the past dismissed these allegations, he said.(The Kerala High Court had dismissed a petition seeking a court-monitored probe against Mr Vijayan and his daughter, Ms. Veena, in connection with the latter’s financial transactions with CMRL as the mining firm’s IT consultant during the 2017-2021 period.(The High Court found no evidence that established a cognisable offence under the Prevention of Corruption Act. Later in October 2025, the Supreme Court dismissed Congress leader Mathew Kuzhalnadan’s same plea and cautioned him against using courts as platforms for political battles.)Mr. Govindan accused the Congress and the United Democratic Front (UDF) of being hand-in-glove with the BJP “as the Central agencies hunted major Opposition leaders across the country.”‘Two UDF Ministers’ names also came up’“The Congress’ national leaders came to Kerala and asked why Mr.Vijayan was not being arrested. It was the Congress’ petition which served as the basis for former Delhi CM Arvind Kejriwal’s arrest. The Delhi High Court later dumped these allegations as baseless. Similar attempts are now being made in Kerala to target Mr.Vijayan and the CPI(M). Two UDF Ministers’ names also came up in the CMRL transactions. However there has been no case or investigation against them. People suspect that Chief Minister V.D. Satheesan, who met Prime Minister Narendra Modi yesterday (Tuesday), and the UDF are supportive of these raids. The Congress has been alleging a deal between the CPI(M) and the BJP, but now the real deal between the Congress and the BJP has been proven,” he said.Mr. Govindan questioned the basis on which the ED detained Mr. Vijayan, noting that he is not an accused in the case.“This is a politically motivated attack against the party. No FIR even exists in this case. The High Court only said that the investigation prior to the registration of an FIR can continue. The party would not have intervened if this was a case against Ms.Veena alone, but here an attempt is being made to arraign Mr.Vijayan as an accused and through him attack the party,” he said.Mr. Govindan said the CPI(M) would organise torch-lit protests at all party branch committees across the State on Wednesday evening against the attempt to target Mr.Vijayan and the party. Mass protests are also being held at all local, area and district levels.Tharoor refutes Brittas’ chargesMeanwhile, Congress Working Committee (CW

ED raids in Kerala: Mohamed Riyas says CPI(M) will not ‘bow before Sangh Parivar’

Police personnel deployed outside the house of Beypore MLA and former Minister P.A. Mohamed Riyas at Kottuli in Kozhikode on Wednesday even as CPI(M) workers are reaching there in large numbers.

| Photo Credit: K. Ragesh

Kerala’s former Minister for Public Works and Tourism and Beypore MLA P.A. Mohamed Riyas wrote a cryptic social media post on Wednesday morning even as ED raids continued at multiple locations, including at his house in Kottuli in Kozhikode city.“Attack us from all sides, but we will not bow before the Sangh Parivar. Will fight till the last breath,” the post on Facebook said.

The scene outside Mohamed Riyas’ residence in Kozhikode on Wednesday

| Video Credit:

K. Ragesh

Many Communist Party of India (Marxist) activists and supporters commented below, extending their support. The raid was conducted when Mr. Riyas was reportedly not present in his house.According to CPI(M) leaders, he was at the party’s district committee office. Three ED officials are reportedly in the team conducting the raid and central paramilitary personnel are guarding the house owned by his father Abdul Khader, a retired police officer.Meanwhile, CPI(M) workers led by party district secretary M. Mehboob and Kozhikode Deputy Mayor S. Jayashree led a protest march from outside Mr. Riyas’ house against the ED.Mr. Mehboob told the media that the raids were politically motivated. “This is not such a big deal for us. The CPI(M) has overcome much bigger problems... Why are they raiding Mr. Riyas’ house? We will not be cowed down by such tactics of the BJP and the Sangh Parivar,” he said. Mr. Mehboob said that the CPI(M) would not obstruct the ED’s work. The CPI(M) workers later took out another protest march in Kozhikode city.Police personnel have been deployed outside Mr. Riyas’ residence even as reports emerged that more CPI(M) workers will reach there. Published - May 27, 2026 12:53 pm IST

ED raids former Kerala CM Pinarayi Vijayan’s houses in CMRL pay-off case

New study urges Kerala govt. pursue measures to improve revenue mobilisation, expenditure efficiency

New study urges Kerala govt. pursue measures to improve revenue mobilisation, expenditure efficiency

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ED raids on Pinarayi Vijayan: CPI(M) says will resist politically and legally; party workers protest across Kerala

ED raids in Kerala: Mohamed Riyas says CPI(M) will not ‘bow before Sangh Parivar’

CPI(M) condemns ED raids on former Kerala CM Pinarayi Vijayan