Vagbhatananda was intimate with farmers and labourers. He fought uncompromisingly against the capitalist system that exploited and enslaved labourers. He strongly opposed the rulers who supported and strengthened the system too. A down trodden labourer of a Tiles company in Feroke was beaten to death. That was in 1936 and K P Gopalan, the famous communist leader observed ten day long hunger strike protesting the same. Vagbhatananda extended his full support to it. In the strike pavilion he made a speech sharply criticising world capitalism as well as imperialism. Gopalan broke his upavasa drinking the lemon juice given to him by Vagbhatananda. He had also presided over a meeting of the farmers’ movement known as Abhinava Bharat Yuva Sangham formed by A V Kunhambu at Karivallur in the year 1935. Vagbhatananda protested again, when a labourer of Kozhikode Common Wealth Company was beaten hard by its master who was a European. This was in 1932. When news papers kept silent about the incident Vagbhatananda wrote an article entitled ‘Thozhilalikalute Duravastha’ (bad condition of labourers). He observed that such incidents were the villanous acts of giant like men who had neither brotherly love nor love in common He asked whether the vaisravanas saw the pitiable sight of the poor lakhs suffering from the pain caused to them by these cruelties. Vagbhatananda saw both these as the mean and cruel denial of human rights and freedom.