ED Seizes CMRL in Rs 2.78 Crore Fraud Case Against Veena Vijayan
The Enforcement Directorate (ED) is conducting an intensive investigation into CMRL over Rs 2.78 crore worth of alleged fraud linked to Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan. Key findings and ongoing investigations could have profound implications for the state government.
Highlights
- •ED intensifies probe against CMRL for Rs 182 crore money laundering case
- •Fake expenses totalling Rs 2.78 crore linked to Veena Vijayan's firm, Exalogic Solutions Private Limited
- •Loan provided by Empower India Capital Investment Private Limited (EICPL) to Exalogic despite non-payment issues
- •Search operations carried out in multiple locations including Thiruvananthapuram and Bengaluru
New Delhi: The Enforcement Directorate (ED) has intensified its probe into CMRL and linked the case to the alleged fraudulent payments to Veena Vijayan, daughter of former Kerala chief minister Pinarayi Vijayan. The ED is particularly looking at fake expenses booked by Cochin Minerals and Rutile Limited (CMRL), a publicly listed company with significant state ownership.
Investigations indicate that one of the false entries made in CMRL's records pertained to payments to Veena, who operates Exalogic Solutions Private Limited. The ED revealed that Exalogic received Rs 2.78 crore under the pretense of Income Tax consultancy services. Authorities further allege that Empower India Capital Investment Private Limited (EICPL), run by SN Sasidharan Kartha, a significant figure in CMRL, provided loans totaling Rs 50 lakhs to Exalogic despite its failure to repay timely.
CMRL is jointly managed by Sasidharan and Saran S Kartha. Currently, the company holds about 48.75 percent of publicly listed shares while the state-owned Kerala State Industrial Development Corporation controls 13.41 percent as on March 31, 2023.
The saga began with a raid by the Income Tax Department in January 2019 that identified fake expenses of approximately Rs 130 crore. CMRL's admission to these illegal expenses before the Income Tax Settlement Commission paved the way for further scrutiny and eventual ED intervention under the Prevention of Money Laundering Act (PMLA). Despite challenges to this probe from CMRL, led by SASidharan Kartha, the case now appears well-grounded with multiple ongoing investigations.
Veena Vijayan's Residence
The search operation, carried out in Kannur, Ernakulam, Thriruvananthapuram, and Bengaluru by the ED, also included premises where Veena was domiciled. Intelligence reports indicated her father Pinarayi Vijayan stayed with her in Thiruvananthapuram during this period.
In a broader political context, allegations against CMRL's questionable dealings raise critical questions about governance and financial practices. The opposition continues to target the current government, alleging misuse of public funds for personal gains. The ongoing probe could significantly impact Kerala politics in the coming months as related legal battles proceed.
