The Enforcement Directorate (ED) conducted extensive searches at ten locations across Kerala on Wednesday, including the rented residence of former Chief Minister Pinarayi Vijayan in Thiruvananthapuram. These actions are part of an ongoing money laundering investigation connected to Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Pvt Ltd, a company owned by Vijayan’s daughter, T Veena.
The raids, carried out under the Prevention of Money Laundering Act (PMLA), also targeted premises linked to former minister and MLA PA Muhammad Riyas, who is Veena’s husband, in Kozhikode. This significant development occurred just one day after the Kerala High Court declined to quash the ED's probe into the alleged financial irregularities.
Allegations of Undue Payments and Financial Irregularities
The core of the controversy revolves around claims that Exalogic Solutions received substantial payments from CMRL without providing any corresponding services. Reports initially surfaced in August 2023, alleging that Exalogic had received Rs 1.72 crore from CMRL between 2017 and 2020 for services that were not rendered. Another account suggests illegal payments of the same amount occurred between 2018 and 2019.
The Serious Fraud Investigation Office (SFIO) launched a detailed probe following these revelations. In its 160-page prosecution complaint, the SFIO named T Veena, CMRL Managing Director Sasidharan Kartha, and 25 other individuals as accused. Several companies, including CMRL, Exalogic Solutions, and its subsidiary Empower India Capital Investments, were also implicated. According to the SFIO, Veena’s firm received approximately Rs 2.70 crore from CMRL.
Legal Ramifications for Veena and Associated Entities
Further compounding the issue, the Income Tax Interim Settlement Board reported in 2023 that Rs 1.72 crore had been paid to Exalogic, citing depositions from CMRL employees. The ED subsequently registered a case under the PMLA in 2024 to investigate these allegations.
In April 2025, the Union Ministry of Corporate Affairs gave its approval for prosecution proceedings against T Veena. She faces charges under Section 447 of the Companies Act, 2013, which addresses corporate fraud. Conviction under this section can lead to a jail term ranging from six months to ten years, along with a fine that could be up to three times the amount involved in the alleged fraud.
While former Chief Minister Pinarayi Vijayan is not directly named as an accused in the case, the ongoing investigation and the raids on his residence have ignited a significant political controversy within Kerala. The Kerala State Industrial Development Corporation previously held a 13.4 percent stake in CMRL, adding another layer to the complex financial scrutiny.