Partly because of the allegations of financial malpractices at CMRL, the ED has heightened its investigation with simultaneous searches at approximately 10 premises affiliated with former Kerala Chief Minister Pinarayi Vijayan and his family.
The search was undertaken after the Kerala High Court refused to quash the ED investigation, apparently putting a significant political spin on the case. The ED raids are said to be part of a multi-year probe into charges of corruption, illegal payments and money laundering against Kerala-based industrial company Cochin Minerals and Rutile Limited.
The financial transactions under investigation that were caused by Exalogic Solutions Private Ltd., a corporation owned by Vijayan’s daughter, T Veena, are being investigated by bodies. The key allegation in this case is that CMRL paid Exalogic Solutions substantial sums but did not offer the company any such real services.
As a result, the Serious Fraud Investigation Office of the Union Ministry of Corporate Affairs, which oversees CFAs, conducts a comprehensive investigation. Exalogic Solutions has reportedly received a total amount of Rs 2.70 crore from CMRL in this investigation.
In a detailed 160-page case, the SFIO named 25 people accused, including T Veena and CMRL managing director Shashidharan Kartha. Officials conducted searches of Kerala minister and MLA P.A. Mohammed Riyas’s residence in Kozhikode in the last action by the ED.
Riyas is married to T Veena and is a prominent politician of Kerala. The raids have brought political disputes in Kerala, with opposition parties demanding accountability and openness in the investigation. In April 2023, the Ministry of Corporate Affairs granted T Veena approval for the legal proceedings associated with the alleged illegal financial transactions.
She is facing allegations under Section 447 of the Companies Act, 2013. People convicted will be sentenced to prison anywhere from six months to 10 years, and could face steep fines that would potentially involve three times the sums involved in the fraud. While none could identify former Chief Minister Pinarayi Vijayan as a single accused, scrutiny of his daughter and son-in-law has attracted widespread political scrutiny in Kerala.
In tandem with this, the ED is working on the investigation and will soon be analysing the financial notes, digital evidence and business transactions that are in line with some scams. And as the investigation continues, increasing legal and political momentum will develop in the weeks ahead.
