In Kerala, why a business deal between a CPM leader’s family and Rajeev Chandrasekhar’s firm is back in focus

But in a state where the Left and the Congress-led United Democratic Front (UDF) are the main political rivals and the BJP has a negligible electoral footprint, public espousals about fighting the BJP and the RSS are almost a permanent poll plank for both the established political fronts as they want to shore up minority support. Jumping on Jayarajan’s comments, the Congress highlighted how the Left leader’s wife and son own shares in an Ayurvedic spa that last year handed over operations to a hospitality venture backed by Rajeev Chandrasekhar’s private equity firm. This, the Congress has alleged, places a question mark on the Left’s commitment to fighting the BJP.

With the Congress finding a line of attack against the Left as the BJP welcomed Jayarajan’s comments, Chief Minister Pinarayi Vijayan and CPI(M) state secretary M V Govindan both clarified that the fight in Kerala was primarily between the CPI(M) and the Congress. Jayarajan, meanwhile, said his comments were meant to keep the Left on its toes.

What ties Jayarajan and Chandrasekhar?

Jayarajan’s wife P K Indira and son Jaison hold shares in the Vaidekam Ayurvedic treatment centre in Kannur. In April 2023, the Ayurvedic centre handed over its operations to Niraamaya Retreats that operates several hospitality ventures in the country and is backed by a private equity firm, Jupiter Capital, founded by Chandrasekhar. A month before the deal, the Enforcement Directorate (ED) and the Income-Tax Department had conducted searches at the Ayurvedic spa.

“The business deal began after the ED and I-T Department started probing into the resort. After the running of the resort was handed over to the firm connected with Chandrasekhar, the probe by the agencies abruptly ended. Now, will the ED show courage to conduct a raid at the resort which has been taken over by Chandrasekhar?” Leader of Opposition V D Satheesan of the Congress alleged after Jayarajan’s comments on Sunday.

Satheesan alleged that the CP(M) and the BJP had turned into a “mutual co-operative movement” in Kerala. “The unholy nexus between the two parties has come into the open. The CPI(M) bid is to weaken the Congress and thus propitiate the BJP. Chief Minister Pinarayi Vijayan is careful not to invite the wrath of the BJP. Jayarajan praised the BJP candidates with the connivance of Vijayan,” he said.

In response, Jayarajan on Wednesday accused Satheesan of illegally collecting money from abroad and being responsible for putting out morphed photographs of his wife meeting Chandrasekhar. On Thursday, the Congress leader sent the LDF convener a legal notice demanding a public apology for making allegedly defamatory and false statements against him.

Chandrasekhar, meanwhile, said, “If there is a business partnership between two wives, how does that become a secret deal between the CPI(M) and the BJP? Those who have no achievements to present before the people are coming up with lies. I am approaching the people with my progress card. An election should not be fought with half-truths and lies.”

This is not the first time the Vaidekam-Niraamaya Retreats deal has been questioned by politicians in Kerala. In December 2022, Jayarajan’s rivals in the CPI(M) sought a probe into his financial dealings. P Jayarajan, a senior leader from Kannur, was said to have questioned E P Jayarajan’s financial dealings, raising questions at a state committee meeting. At the time, M V Govindan, without referring to the resort issue, said, “There are wrong tendencies in the party, which will not be tolerated. If there are unacceptable tendencies, the party will intervene and correct them. Rectification is a continuing process.’’

But in February 2023, the issue died down after Govindan said there was no probe against Jayarajan in the Vaidekam issue. But soon afterwards, the resort came under the scanner of central agencies. Sources at the time said the idea to hand over the operations of the Rs 21-crore resort to a professional player in the hospitality industry had come up before the directors much before the controversy.