Former Kerala Finance Minister Dr T M Thomas Isaac (71) filed his nomination as the ruling Left Democratic Front (LDF) candidate on Saturday from the Pathanamthitta Lok Sabha seat in the shadow of the sixth summons issued to him by the Enforcement Directorate (ED).
The agency has issued the summons in connection with alleged violations while issuing masala bonds by the Kerala Infrastructure Investment Fund Board (KIIFB) during his tenure as finance minister between 2016 and 2021.
The CPI(M) leader speaks to The Indian Express about the BJP’s alleged politicisation of central agencies, his vision for Pathanamthitta, and fiscal federalism.
Excerpts:
The ED move is politically motivated. They are stepping up harassment, particularly after I was declared the candidate. I have not been charged with money laundering. Someone in Delhi must have thought there had been corruption while executing KFIIB’s projects worth Rs 80,000 crore.
Initially, they argued that state government agencies cannot issue masala bonds but that argument fell through after the Reserve Bank of India permitted us. We have complied with the regulations.
The ED issued a summons two years ago as well. I told them I would come. Then they sent another summons asking for bank account and company details. This is an intrusion of privacy. I approached the court asking what the charges were. The ED did not have an answer and one-and-a-half years later had to withdraw the summons.
The ED cannot arrest me. It has been given unlimited powers only in money laundering cases. In a case of foreign exchange violations, it first needs to prove I was wrong. I challenged the new summons in the Kerala High Court and my decision will depend on what the court says. (The court on Monday ordered a status quo in the matter till April 5).
It is quite the opposite. I am using this as a campaign tool to show people how the KFIIB has transformed the state. In Pathanamthitta, Rs 7,000 crore is being used for development projects. If not the KFIIB, I ask what is the alternative? They are just blocking development work.
I have formulated a migrant-intensive programme to make Pathanamthitta the first knowledge district in the state, where we will tap their international experience, relations and skills to transform the district into a knowledge economy.
We will also involve academics of the diaspora to ensure students get international exposure and customised skill training and work to get them placed.
At the same time, resources flowing into the state should be used for knowledge-intensive industries. This will lead to a skilled workforce and the state becoming an investment destination.
A boost can be given to the tourism industry in Sabarimala with better connectivity infrastructure, a clean Pathanamthitta and rejuvenating rivers. Another focus point is rubber cultivators. We need to support them. I will fight tyre companies in Parliament and demand a minimum support price (MSP) for rubber. The international price is Rs 220 per kg while domestically it is Rs 180.
I have nothing negative to say about him. I am not saying he has not done any work but I am putting forward a radically different blueprint for the constituency.
He stands no chance. The BJP won 29.5% of votes in 2019, and they will get a maximum of around 14%. Many LDF and UDF votes that went to the BJP in 2019 will return this time.
It was crucial. The CPI(M) took a progressive stand in the case and stuck to it while the BJP changed its stand after the verdict. It gained from the row in 2019 but that sentiment has waned.
Kerala’s renaissance was led by Hindu reformers like Sri Narayana Guru and Ayyankali, who challenged the caste system. The BJP now says if you want to be a good human being, you have to be Hindu. People will not buy it. Also, the Manipur violence has undone the inroads that the BJP made among Christians.
We are hoping for a repeat of 2004 when the LDF won 18 seats and the Congress drew a blank. One of the major reasons is the minorities in the state now believe that the Left is the only stable force protecting their interests despite our leaders not practising any religion.
The BJP does not accept diversity. It likes having one nation, one government, and one policy. It is trying to make states honorary municipalities of the Centre.
If most states go to court against the Centre as a federal coalition, that will take the Centre-state dispute to a new level and the day is not too far. The Supreme Court has taken a strong stand in the electoral bonds case, offering democracy some hope. As a result, the organised corruption orchestrated by the ruling party has come out in public.
We have to wait and see. It may not have any impact on Lok Sabha elections. Look at how Modi is using the story of Kuchela and Krishna to counter allegations of corruption. They (the BJP) have been trying to develop such narratives.
If the BJP is in power, it will further reduce states’ fiscal space. It may not reduce the share of taxes, but it will deny states the right to borrow. States as a whole cannot overborrow. They must keep within the limits (3.5% of gross state domestic product). If a state borrows more during a particular phase, it has no macroeconomic impact. What matters is a state’s overall fiscal deficit.