Amidst electioneering, he has found himself in an unenviable situation of being locked in a battle with the Enforcement Directorate (ED), which has summoned him in connection with the issuance of masala bonds, when Dr. Isaac was Finance Minister, by the Kerala Infrastructure Investment Fund Board (KIIFB), a body corporate constituted by Kerala government.
In an interview with The Hindu, Dr. Isaac calls ED “an enforcement agency of the BJP” and says he will fight it to the very end. “‘If the BJP gets a third term at the Centre, federalism is finished,” he argues. Edited excerpts:
Pathanamthitta is a constituency held by the Congress ever since it was formed – for the last three consecutive terms. How hopeful are you in wresting it?
Campaigning is progressing as per our plan. The Congress candidate (Anto Antony) has a long experience of 15 years in the constituency, a period long enough to have personal acquaintance with a large majority of people. But it also has its drawbacks. Unless you have performed very well, there will be a lot of disappointment. It’s also a fact that people do not expect their MP to be involved in local development activities. It is the domain of the MLA and the local government.
But I’m contesting here with a clear-cut agenda for the development of Pathanamthitta. It has three verticals. The first is to turn it into a knowledge district. The development of a pilgrim tourism circuit centred around Sabarimala comes second and the third corresponds to the protection of rubber growers and the development of the rubber industry. In all these, we are going to ensure that nobody is left out and there’s environmental sustainability.
How is it possible for you to support the cause of rubber because the planters are unhappy with both the Centre and the State?
I would start by asking who is responsible for the present situation? Who signed the agreement that rubber is an industrial product? Who signed the agreement to reduce rubber import restrictions and the import duty to this level? Who has so far refused to give any support to rubber?
They say India has made gains from the treaty [ASEAN-India Free Trade Agreement] as our export of software and the like increased. But certain crops and regions have lost out. So, there must be some compensatory support given. So, who are the people who are failing [the rubber growers]?
I will fight the monopolistic purchasing practice of rubber oligopolies and expose them. The rubber is now priced at the external market around ₹220 while it’s just ₹180 here. Still, import is continuing. Obviously, it’s a collusion among tyre companies to keep the prices low. You fight the Union government politically and demand that they reinstate the replantation subsidy, which is very much necessary. The trees are becoming old and non-competitive. And I argue for the introduction of genetically modified rubber to enhance competitiveness. This is a battle that should be fought professionally, and I’m equipped to do that.
And how do you propose to transform Sabarimala into a hub of pilgrim circuit?
The goal is to provide all amenities to pilgrims, at sannidhanam (the location of the shrine] and at the shelters (eda thavalams) en route. I would also see to it that the major infrastructure projects for their transportation such as the proposed airport, the railway line and a new greenfield highway materialise in five years. Then there is the plan for Pampa rejuvenation, sanitation, treatment plants, etc.
There’s criticism that the proposals you have made are a little overambitious…
Transforming Kerala into a knowledge economy was a proposal made by me in the last Budget I presented. The Kerala government is working towards this target and the next phase of development is going to be the transition to knowledge economy.
But how do you make this transition? Pathanamthitta, I would say, has all the prerequisites to make it into a knowledge economy. The people are highly educated. Its diasporic population is large and employed in high-end jobs, a fair share of it in academia. The idea is to utilise their skills and knowledge to skill the jobseekers in order to attain this transition. These initiatives are already under way under the Knowledge Economy Mission.
Besides having a sizeable Hindu population, Pathanamthitta has a considerable number of Christians belonging to various denominations. The Congress considers many of them as its traditional vote bank and the BJP has been aggressively wooing these groups, especially the Syrian Orthodox community. The Left is not very comfortable with some of these denominations. How do you find your candidature appealing to these sections?
Over time, in the last two decades, the Left’s influence in Central Travancore area has been steadily increasing. This is reflected in the Left victories in local governments, and all the Assembly seats in the constituency are held by the Left front.
This is primarily because the fall of rubber created severe economic disruption. And that prompted many people to look for an alternative. Now they have embraced the Left. They harboured biases earlier but are much more open-minded now. Further, the recent developments in India – they declared Easter to be a working day in Manipur which was later withdrawn under pressure – have made the minority communities restless.
Although there is bickering within communities, the spirit of ecumenism is growing. This has reduced a lot of inter-denominational problems. Finally, the BJP peaked in Pathanamthitta in 2019, thanks to the issue of entry of women in Sabarimala temple. It got a vote share of 29.5%. The CPI(M) managed to just keep its head above that with 31%. But my estimate is that the BJP will not get more than 12% to 13% votes now. Its vote share came down in the local body election and fell drastically in the last Assembly election. The average was only 16%. The fact is that many of these people have been shifting to the Left. With the decline of the BJP, the question is where will these votes, which went from the LDF and the UDF, return to? I think most of them would drift to the Left.
What makes you think so?
Because the Left has been making a concerted effort in the last five years to win them over. Pathanamthitta tops the districts in terms of the number of BJP followers who have returned to the CPI(M). People are coming from the Congress too. Two former district Congress presidents and a former district panchayat president are with the Left now.
I also find it advantageous that the constituency has a large number of non-aligned voters. I am able to talk to them, and wherever I go, I choose not to give a speech but to take questions from the people. I have even attended online conventions held by the diasporic community.
That the Kerala government has been mulling to bring a legislation on the dispute between the Jacobite and Orthodox factions of the Malankara Church has created discontent within the Orthodox community. How is this being addressed by the Left?
The Kerala government is not party to the dispute. But the government wants peace to be made and so, it has been following a policy of talking constantly with these sections, firefighting when things become tough.
The Orthodox faction, because of the recent visit of the Patriarch of Antioch and the reception given to him, thinks that the Government of Kerala is leaning towards the Patriarch faction [the Jacobites] and that the Kerala government may bring a Church Bill to overrule the Supreme Court judgment. It has been clarified to them that the Kerala government has no such intentions. The suggestion for a Church Bill was made by Justice (retd) K.T. Thomas in 2018. Almost five years have passed since. Nothing happened. It will remain so in future.
It should be possible to reach an understanding between the warring factions through dialogue and the Christian spirit of give-and-take. My feeling is that considerable progress has been made in this direction. Many people and the churches are willing to maintain status quo. It’s no longer an election issue.
The point is that Kerala government doesn’t want to play an active role in this except for brokering peace as it wants maintenance of law and order.
How important is the role of the Kerala Congress(M) in bringing the voters in the region closer to the Left?
I have mentioned that there has been a shift to the Left in this constituency. Compared to 2019, a major political development has been the entry of KC(M) to the Left front. Of the seven Assembly seats in the Pathanamthitta Lok Sabha constituency, the CPI(M) has two. Three are held by KC(M) and one each by the Janata Dal and the CPI. I would say the CPI(M) would easily have 70% to 80% of the votes of the Left here. Ranni, for instance, has been the CPI(M) sitting seat, but it worked hard so that the KC(M) wins that seat. This has brought about a great bonding between the KC(M) and the Left. KC(M) workers have been very active; their MLAs are most cooperative and are leading the campaign. An important change from 2019 is the arrival of this new political section, which has considerable influence in the area, to the Left fold which makes our bonding with the Christian community stronger.
But isn’t a section of Christians still uncomfortable because the Kerala government has been repeatedly talking about resisting the CAA? Isn’t it being seen as appeasing the Muslim community?
It’s so only for the fringe elements. That would’ve been the case if the BJP had, for tactical reasons, stopped attacking the churches. The Catholic Bishops’ Conference in Bengaluru made a statement, which was political. Even in Kerala, the bishops’ conference had made a strong statement. So, that’s what is important, not CAA. But CAA is the first step… The population register can be a big challenge for the Christian converts in the northeast. Once you start distribution of citizenship based on religion, what makes you think it will be stopped with the Muslims?
The CPI(M) and the Kerala government have been talking about the onslaught on federalism, including fiscal federalism, by the BJP-led Union government and as we speak, a sitting Chief Minister (Arvind Kejriwal) has been put behind bars just ahead of the elections. How significant is this as a poll issue?
If the BJP comes to power for a third term, federal India is finished. They would dismember the language-based States and, with that, States will cease to be cultural entities of commonly shared history and aspirations. They don’t think diversity can contribute to meaningful national identity. The States will be at the mercy of the Central government. The intrusion is not only in the legislative sphere, which has been steadily taking place by shifting things to the concurrent list, but also in terms of administration which is manifested by the way the Centre is using Governors to interfere in the State administration. Thirdly, the fiscal space of States is being emasculated. They are increasingly becoming implementing agencies of federal schemes and programmes. One dream of the Centre is to reduce the borrowing power of the States from 3% to 1.7%. This was even debated in the 15th Finance Commission. Fortunately, COVID-19 saved the States. They may do it now. The States will become glorified municipalities.
The Kerala government has moved the Supreme Court against the Governor referring some of these Bills to the President, and the President in turn withholding assent to four of them. Do you think the case, as some people say, has the potential to redefine Centre-State relationship as in the S.R. Bommai case?
There’s hope as long as the present Chief Justice is there. One doesn’t know what is going to happen. The Supreme Court has dithered and remained ambivalent on many issues while it has taken a stand on some issues. Take the case of the President holding back assent to a few Bills. There is a University Bill. Universities are State’s creations. The Chancellor is defined by the law passed by the legislature. We want to change the Governor from being the Chancellor. What is the legal, Constitutional point by which assent is being held back? It’s simply a political game of the BJP to get backdoor entry with the help of the Governor into the university system in Kerala where they have no presence at all today. So, this is being challenged in the court.
Now, take the case of Kerala taking on the Centre in the court on the financial relation. What a shame that the Central government was forced to agree that there is a ₹13,608 crore undisputed legal right of the State to borrow. Undisputed. Things under dispute are in court. This is not in court, but they said it would be given only if the case was withdrawn.
The Centre is being accused of using agencies such as the Enforcement Directorate as hound dogs to go after political opponents. It came after you as well and sent you several notices to appear before it and you went to court against the notice. It has summoned you again when your campaign is going on. What do you intend to do now?
It’s very clear. The ED has become the enforcement agency of the BJP. Is there a single BJP leader – the BJP being the ruling party has more chances of being corrupt – under the ED scanner? All are Opposition leaders. If a leader crosses the floor, the case is dropped. There are many examples.
The electoral bonds revelation shows how the ED has been used as an extortionary instrument to collect money for the BJP. The News Minute and Newslaundry had earlier brought out the link between raids and donations to the tune of ₹335 crore to the BJP. One doesn’t know what is under the covers of the PM Cares Fund of ₹12,000 crore. So, the agency, the ED, is a political bubble. That’s why I’m fighting it. I’ll fight more for my rights to the last.
So, you are not going to appear before it?
No, I’m not going to appear. They must tell me the crime I’ve committed. Two years have passed, but they don’t want to tell me what the crime is. The court also approved of that stance, and they had to withdraw the summons sent to me. Now, while we are fighting the case in the court, they have started sending summons again. And they even slightly threatened me saying, “You are being given one last chance.”
What are they going to do after that? With all this investigation, they couldn’t find an element of corruption or money laundering. I’m charged under FEMA [on the issue of masala bonds by KIIFB by which they have unlimited powers. But the court has not given it to them. So, they cannot just arrest me. I think the court will intervene.
Last time, they told the court that some KIIFB officials had told them that I was in the know of funds utilisation. I don’t know what they mean by that. Every month, funds utilisation statement is sent to the Reserve Bank of India. They have never asked any questions about any discrepancy.
I asked the KIIFB officials, because as chairman of its executive committee, I’m not in the purview of deciding these fungible funds, like which funds should go where and the like. It’s a matter handled by the officials. They said they never made any statement. So, either the ED is lying, or they have fabricated some statement in the name of KIIFB officials. I’m requesting the court to get these affidavits and verify them. Every inch will be fought.
What if they come to pick you up amidst campaigning?
It’s going to charge up my campaign. In all my interactions with the people, they ask why the ED is after you because the Congress is telling them I’ll be arrested the way Kejriwal was.
It gives me a chance to tell them about KIIFB projects worth ₹7,000 crore in the constituency. And I ask them, “have I done too much? Have I done too fast? Shall we postpone all this for another time?” And they say, “we need more”. Very well then, has the UDF got any other alternative to provide finance for all this? They are trying to scuttle the progress of the constituency. So, this is not interfering with the flow of my campaign. Rather, I’ve made it a key part of my campaign.
This apart, there’s the case against T. Veena, the Chief Minister’s daughter, which has just been taken over by the ED. The allegation is that the company run by her received pay-offs from some firms in Kerala. The case was investigated by the Serious Fraud Investigation Office (SFIO) after the Income Tax Interim Settlement Board passed an ex parte order against her. Aren’t these arming the Opposition to attack the CPI(M) and the Left?
Of course, the ED actions are to give a weapon to the Opposition to attack the CPI(M). The company in question, show the records, have given ₹95 crore to various individuals, their names are given, including media houses, without any agreement. Is there any case or investigation as to why these people have been given money? No. But here’s an IT company [run by Ms. Veena] making a service agreement with this firm for provision of certain services for which they have to give a monthly payment, which totals to ₹1.75 crore.
The amount mentioned against many of the leaders, some from the Congress, on the company’s list are much higher. But this ₹1.75 crore on a service agreement on which tax is paid is made into a serious fraud to be investigated.
But the allegation is that there was no service provided.
Let the company say that. Who are these people to level that allegation? The company managing director has not come out with such an allegation. Some senior officials made such an allegation which made it into the ex parte verdict. This is deliberately planned to bring her into the controversy and reach the Chief Minister. We will fight it politically and explain the reality to the people.
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