New Delhi : Alleged fraudulent payments to Veena, daughter of former Kerala chief minister Pinarayi Vijayan, have come under scrutiny as the Enforcement Directorate (ED) has intensified its Rs 182-crore money laundering probe into the Cochin Minerals and Rutile Limited (CMRL) case.
Investigators indicate that “one of the fake expenses booked by CMRL is towards the payment to Veena.”Besides, they told , “the company of Veena, Exalogic Solutions Private Limited (a one-person company), received fraudulent payments totalling Rs 2.78 crores from CMRL under the guise of Income Tax consultancy services.
“Further, the officials privy to the case said the Empower India Capital Investment Private Limited (EICPL), operated by SN Sasidharan Kartha, MD of CMRL, allegedly extended loans to Exalogic totalling Rs 50 lakhs, despite Exalogic failing to make timely repayments.
CMRL is a publicly listed company in which 48.75 per cent shares are held by the general public, and 13.41 per cent shares are held by the Keralam state Public Sector Unit (PSU) Kerala State Industrial Development Corporation (as on March 31, 2023). Sasidharan and his son Saran S Kartha, the Joint Managing Director of CMRL, have substantial control over the company.The CMRL was searched by the Income Tax Department in January 2019, during which certain fake expenses to the extent of about Rs 130 crore were identified.Officials said, “The fake expenses were also admitted by CMRL before the Income Tax Settlement Commission.””A complaint was made before the Serious Fraud Investigation Office (SFIO) based on the income tax department findings, and the Ministry of Corporate Affairs directed investigations by SFIO.
Accordingly, SFIO started investigations,” they said.ED had initiated investigations under the Prevention of Money Laundering Act (PMLA) based on the investigations initiated by the SFIO. However, the same was challenged before the Kerala High Court by the CMRL on the ground that there was no predicate offence and the court had issued no coercive action by ED in this case on April 12, 2024.The SFIO filed a Prosecution Complaint on April 3, 2025, for corporate fraud against Sasidharan Kartha and 12 Others before the Additional Sessions Court – VII, Ernakulam, Kerala. The SFIO Prosecution complaint contains a scheduled offence of PMLA.As per SFIO, Sasidharan, and his son allegedly received Rs 30.63 crores in cumulative remuneration from Financial Year 2015-16 to Financial Year 2022-23 despite no dividend payments.Officials further stated that “SFIO investigations also revealed that fictitious cash expenses of Rs 182 crores over a span of 15 years.”
“It was further alleged that CMRL paid Rs 91 crores towards transport services to the companies owned by the Sasidharan family,” they said.In this case, the High Court of Kerala dismissed a writ petition filed by CMRL on May 26, 2026, holding that “initiation of PMLA investigations is valid and does not require predicate offence to initiate investigations.”Further, the court noted that as on the date of judgment, the predicate offence existed as SFIO had filed its prosecution complaint with the scheduled offence of PMLA.”The investigations done by the ED before showed that proceeds of crime were generated by the management of CMRL led by SN Sasidharan Kartha and by Veena,” the court mentioned.
Accordingly, the ED on early Wednesday carried out an extensive search at about 10 premises related to the management of CMRL and Veena in Kannur, Ernakulum, Thriruvananthapuram and Bengaluru to collect evidence of money laundering. Officials said intelligence gathered by ED showed that Veena was residing with her father, P Vijayan, at Thiruvananthapuram.
Accordingly, they said, the premises where she was residing were covered. “When the search team reached the premises where Veena was residing, her father, P Vijayan, was also present.”Investments, Bank Fixed Deposits details are found during the search operations, and the same is being analysed, the officials added.
The controversy had acquired massive political significance after allegations surfaced that CMRL had allegedly made questionable payments to Exalogic Solutions Pvt Ltd, an IT firm owned by Veena.The allegations regarding monthly payments made by CMRL to Exalogic without corresponding services had triggered a fierce political storm in Kerala, with the Opposition repeatedly targeting Vijayan and accusing his family of benefiting from dubious financial dealings.The issue had remained one of the most politically sensitive controversies faced by the Vijayan government.
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