The Enforcement Directorate (ED) on Tuesday summoned T Veena, daughter of former Kerala chief minister Pinarayi Vijayan, for questioning in a money laundering case linked to alleged financial transactions between Cochin Minerals and Rutile Ltd (CMRL) and her now-defunct company Exalogic Solutions Private Limited.
Summons and Investigation Details
Officials stated that Veena has been directed to appear before the agency's zonal office in Kochi on June 12, where her statement will be recorded under the Prevention of Money Laundering Act (PMLA). Additionally, several other individuals have been summoned in connection with the ongoing probe.
Allegations Against CMRL and Exalogic
The investigation revolves around allegations that Kerala-based sand mining company CMRL made payments totaling Rs 2.78 crore to Exalogic Solutions under the guise of IT consultancy services. Furthermore, another company linked to CMRL management allegedly extended loans worth Rs 50 lakh to Exalogic despite delayed repayments, according to the ED.
The agency has alleged that the management of CMRL and Veena generated “proceeds of crime” through these transactions.
Background of the Probe
The summons come weeks after the ED conducted searches at multiple locations linked to Vijayan's family and CMRL as part of the probe. Searches were carried out at the rented residence of Vijayan in Thiruvananthapuram’s Bakery Junction, the Kozhikode residence of former minister P A Mohammed Riyas, and premises linked to CMRL managing director S N Sasidharan Kartha and joint managing director Saran S Kartha.
Violence erupted outside Vijayan’s residence after ED officials completed the searches, with CPM workers allegedly attacking vehicles carrying agency officials. Police confirmed that several individuals were arrested in connection with the clashes.
Legal Proceedings
The ED initiated action after the Kerala High Court dismissed petitions seeking to halt the ED investigation in the case. The court held that the initiation of proceedings under the PMLA was valid and noted that the Serious Fraud Investigation Office (SFIO) prosecution complaint constituted the predicate offence for the ED probe.
CMRL has been under scrutiny since an income tax department search in 2019 allegedly uncovered fake expenses amounting to around Rs 130 crore. Following these findings, the Ministry of Corporate Affairs ordered an SFIO probe in January 2024, after which the ED began its money laundering investigation.
