In a significant development on May 22, 2025, the Kerala Vigilance and Anti-Corruption Bureau (VACB) intensified its probe and named Shekar Kumar, Assistant Director of the Enforcement Directorate (ED) in Ernakulam, as the primary accused in a ₹2-crore bribery case, following the arrests of three alleged middlemen — including Wilson Varghese and Renjith Varrier — by the VACB in a meticulously planned sting operation. The investigation, now in the evidence‐collection phase, has placed a special focus on digital forensics and cyber trails as forensic teams analyze electronic devices seized from the accused.
The VACB, Kerala’s specialized anti‐corruption agency established in 1964, investigates offenses under the Prevention of Corruption Act, 1988. Operating under the Department of Vigilance, Government of Kerala, the bureau conducts surprise raids, quick verifications, and confidential inquiries to root out graft among public servants. Parallelly, the Anti-Corruption Bureau (ACB) in various states complements these efforts by taking swift action against corrupt officials across departments.
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The probe was triggered by a complaint from Aneesh Babu, a cashew exporter from Kottarakkara, who alleged that an individual posing as an ED agent demanded a ₹2-crore bribe to halt an ongoing money-laundering inquiry. According to Babu, the so-called agent — later identified as Wilson Varghese — first contacted him after ED summons in February and March sought his company’s foreign-fund transfer records. Babu’s timely report to the VACB set the stage for a classic vigilance trap.
On May 15, VACB operatives orchestrated a rendezvous in Panampilly Nagar, supplying marked banknotes laced with phenolphthalein to the agent. Wilson Varghese was apprehended while accepting a ₹2-lakh cash installment, after which VACB teams arrested Renjith Varrier, a Kochi-based chartered accountant implicated in facilitating the contact between Babu and the ED officer. These arrests exposed a network allegedly spanning ED personnel and private intermediaries.
VACB officials confirmed that electronic devices seized from the accused — including smartphones and laptops — are undergoing forensic analysis. “Our current focus is on cyber‐related aspects,” said SP S. Sasidharan of the Ernakulam VACB unit, emphasizing the critical role of digital evidence in mapping the entire bribery nexus. Early reports suggest rapid extraction of call logs, messaging data, and GPS trails, which could link Shekar Kumar directly to the illicit transactions.
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The First Information Report (FIR) names Shekar Kumar under Section 7(a) [taking undue advantage to influence a public servant] of the Prevention of Corruption Act and Section 61(2) [criminal conspiracy] of the Bharatiya Nyay Sanhita (BNS). Wilson Varghese and Mukesh Jain are listed as second and third accused, respectively, with Chartered Accountant CA Renjith Varrier added subsequently.
The ED, established under FEMA (1999) and the Prevention of Money Laundering Act (2002), investigates financial crimes and money-laundering offenses nationwide. As an economic intelligence agency under the Ministry of Finance, it wields powers to attach assets and summon individuals for interrogation. The involvement of one of its own officers strikes at the institution’s credibility and raises questions about internal oversight.
A source close with ED stated that the agency welcomes a free and fair probe and will fully cooperate with the VACB, while also considering legal remedies to protect its officers. “We are considering anticipatory bail or a quashing petition, but no final decision has been made,” the source said, noting that the ED had sought case details from the VACB via email but received no response.
Critics argue that the ED’s initial silence and delay in releasing a statement, undermining public trust in its investigations. Transparency advocates are calling for a joint inquiry by a high-powered oversight committee to ensure impartiality, recommending that digital forensic reports be made available to all stakeholders under confidentiality protocols.
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This case follows a worrying trend of allegations against financial regulators in recent years, including instances where officials from the CBI and other agencies have faced probes for misuse of power. Such developments fuel public skepticism about the impartiality of federal investigations, particularly in high-profile economic offenses. The inter-agency dynamics between the ED and VACB will be closely watched.
In April 2025, VACB recovered unaccounted assets from a deputy forest ranger as part of a separate bribery investigation, underscoring the bureau’s growing emphasis on asset tracing and forensic audits. Meanwhile, in Jharkhand, senior IAS officer Vinay Kumar Choubey was arrested by the ACB in a money-laundering probe tied to the liquor scam, illustrating the ACB’s expanding remit beyond state cadres.
As forensic reports come in and legal battles unfold, the case against Shekar Kumar will test the robustness of India’s anti-corruption framework and the ED’s internal checks. The VACB’s digital focus may set new standards for evidence-gathering in white-collar crime, while the ED’s response will influence its public image.
Ultimately, the outcome could reshape inter-agency collaboration and public confidence in India’s financial watchdogs.
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