Ed Case

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Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan was called for questioning a second time by the Enforcement Directorate Bangalore about the financial transactions involving CMRL and Exalogic. The question letters were circulated to her for recording her statement on June 29 and it is for the second time that she has been called for in the CMRL fraud case. The case has been opened by ED regarding the financial transactions involving the Cochin Minerals and Rutile Ltd (CMRL) and some private firms owned by the daughter of the former Kerala Chief Minister, Pinarayi Vijayan.

The ED is probing into the CMRL fraud case under the provisions of the Prevention of Money Laundering Act (PMLA). Veena Vijayan was called for questioning in the CMRL fraud case after the agency recorded her statement in the case regarding the alleged financial transactions involving her father Pinarayi Vijayan.

What is high profile CMRL Fraud Case?

CMRL fraud case pertains to the investigation being carried out by the Enforcement Directorate (ED) to probe the alleged financial transactions involving Cochin Minerals and Rutile Ltd (CMRL) in the state of Kerala. Most of the alleged financial transactions were carried out in such a manner that it has attracted the attention of the Agency.

The Organization has been investigating whether the facilitation of certain payments and transactions were done through ‘proceeds of crime’ following questionable business arrangements and unexplained financial transfers.

Why is Veena Vijayan linked to the investigation?

Veena Vijayan has come under the ED’s scanner due to alleged financial transactions between CMRL and her company, Exalogic Solutions Pvt Ltd. According to the agency, CMRL is suspected of having paid around ₹2.78 crore to Exalogic without clear evidence of corresponding services being fully delivered. Investigators are also looking into a ₹50 lakh loan extended by an entity linked to CMRL’s management to Exalogic, including questions over repayment and financial intent.

Veena has reportedly stated during questioning that her firm provided software-related services and consultancy work.

What steps has the ED taken so far?

Veena Vijayan was interrogated for more than nine hours at the ED’s Kochi office on June 17. She was then taken for a full inspection of her bank locker in Trivandrum on June 19 in an attempt to discern the source of income and the finance documentation trail. After analysing the evidence and her statement, the ED issued her another summons to appear on June 29 for further questioning.

The case traces back to the Serious Fraud Investigation Office’s (SFIO) report, which identified a series of alleged irregularities in CMRL’s finances.

The report said that payments were made for no services rendered, and the SFIO later presented a criminal complaint before a court. The earlier Income Tax search operations carried out in 2019 were also said to have uncovered evidence of immense inflated expenses and alleged bogus accounts in CMRL’s books.

Who else is under ED’s scrutiny?

ED probe is not restricted to Veena Vijayan alone. “We have also been questioning people expecting to see money there from CMRL’s management Kartha family as well,” said a senior officer, who spoke on the condition of anonymity. The agency is also probing transactions linked to other allied companies such as Empower India Capital Investments Pvt Ltd and Sasja India Pvt Ltd to trace the financial trail.

Armed with fresh summonses and the files at hand, the ED is poised to intensify its questioning and look deeper into financial documents. The case is yet to be proved, and no regiment or court is yet to pronounce guilt on the matter.