ED raids at Pinarayi Vijayan’s house over CMRL money laundering case
The Enforcement Directorate on Wednesday, May 27, began raids at 12 locations, including at the residence of former Kerala chief minister Pinarayi Vijayan, in connection with the financial transactions involving the IT firm of his daughter Veena T and chemical company Cochin Minerals and Rutile Limited (CMRL). The raid began a day after Kerala High Court dismissed a petition filed by CMRL requesting to quash the ED probe into the case. Search is going on at 12 locations, including Vijayan’s residence in Kannur, his rented house in Thiruvananthapuram, residence of his daughter and son-in-law and former minister P A Mohammed Riyas in Kozhikode, residence of CMRL MD Sasidharan Kartha and the CMRL office in Aluva. As per reports, ED officials took the statement of the former CM Pinarayi Vijayan. As per the case, CMRL had illegal financial transactions with Exalogic Solutions, a now-defunct IT firm run by Veena. The CMRL has paid around Rs 1.72 crore to Exalogic Solutions during 2015-20. The case is being investigated by the Serious Fraud Investigation Office, an agency under the Union Ministry of Corporate Affairs which deals with corporate fraud. Exalogic Solutions Pvt Ltd had received funds from CMRL for IT and marketing consultancy services. The SFIO however says these payments were not for any actual services rendered but to settle a Rs 50 lakh liability that Exalogic owed to Empower India Capital Investments Pvt Ltd (EICIPL), a firm owned by Sasidharan Kartha — the Managing Director of CMRL. This chain of transactions dates back to 2015. The CMRL had approached the Kerala High Court after the agency issued summons to its officers under Prevention of Money Laundering Act (PMLA). However, the HC dismissed the petition stating that no prior FIR was needed to issue summons under PMLA.
THE Enforcement Directorate on Wednesday, May 27, began raids at 12 locations, including at the residence of former Kerala chief minister Pinarayi Vijayan, in connection with the financial transactions involving the IT firm of his daughter Veena T and chemical company Cochin Minerals and Rutile Limited (CMRL). The raid began a day after the Kerala High Court dismissed a petition filed by CMRL requesting to quash the ED probe into the case.
Search is going on at 12 locations, including Vijayan’s residence in Kannur, his rented house in Thiruvananthapuram, the residence of his daughter and son-in-law and former minister P A Mohammed Riyas in Kozhikode, the residence of CMRL MD Sasidharan Kartha and the CMRL office in Aluva. As per reports, ED officials took the statement of the former CM Pinarayi Vijayan.
As per the case, CMRL had illegal financial transactions with Exalogic Solutions, a now-defunct IT firm run by Veena. The CMRL has paid around Rs 1.72 crore to Exalogic Solutions during 2015-20. The case is being investigated by the Serious Fraud Investigation Office, an agency under the Union Ministry of Corporate Affairs that deals with corporate fraud.
Exalogic Solutions Pvt Ltd had received funds from CMRL for IT and marketing consultancy services. The SFIO, however, says these payments were not for any actual services rendered but to settle a Rs 50 lakh liability that Exalogic owed to Empower India Capital Investments Pvt Ltd (EICIPL), a firm owned by Sasidharan Kartha — the Managing Director of CMRL.
This chain of transactions dates back to 2015.
The CMRL had approached the Kerala High Court after the agency issued summons to its officers under the Prevention of Money Laundering Act (PMLA). However, the HC dismissed the petition stating that no prior FIR was needed to issue summons under PMLA.
