The Enforcement Directorate on Wednesday carried out searches at 10 locations in Kerala, including premises linked to Pinarayi Vijayan, as part of its money laundering investigation in the Cochin Minerals and Rutile Limited (CMRL) case, in which his daughter T Veena is implicated. Officials told ANI that the action was part of the agency’s ongoing probe into alleged financial irregularities involving CMRL and Exalogic Solutions Pvt Ltd, a company owned by Veena.

The searches came a day after the Kerala High Court refused to quash the ED’s investigation in the case. Officials said the raids were conducted under the Prevention of Money Laundering Act and included Vijayan’s rented house in Thiruvananthapuram. ED teams also searched premises linked to former minister and MLA PA Muhammad Riyas, Veena’s husband, in Kozhikode. 

CMRL, a Kerala-based company engaged in the manufacture of synthetic rutile and industrial chemicals, has been under scrutiny over allegations of bribery and money laundering. The controversy centres on claims that Exalogic Solutions received large sums from CMRL without providing any services in return. Although the case does not directly name Vijayan as an accused, it has triggered a political row in the state. The Kerala State Industrial Development Corporation held a 13.4 per cent stake in CMRL.

The allegations first surfaced in August 2023, when reports claimed that Exalogic had received Rs 1.72 crore from CMRL between 2017 and 2020 despite rendering no services. Another account of the case alleges that CMRL made an illegal payment of Rs 1.72 crore to Exalogic during 2018 and 2019 even though the IT firm had not provided any service to the company. Following the revelations, the Centre directed the Serious Fraud Investigation Office to conduct a detailed probe.

In its 160-page prosecution complaint, the SFIO named Veena, CMRL Managing Director Sasidharan Kartha and 25 others as accused. The agency also named several companies, including CMRL, Exalogic Solutions and its subsidiary Empower India Capital Investments. According to the SFIO, Veena’s firm received Rs 2.70 crore from CMRL. Separately, the Income Tax Interim Settlement Board reported in 2023 that Rs 1.72 crore had been paid to the company, citing depositions by CMRL employees.

The ED registered a case under the PMLA in 2024 to investigate the allegations. In April 2025, the Union Ministry of Corporate Affairs approved prosecution proceedings against Veena in connection with the alleged illegal payments. She has been charged under Section 447 of the Companies Act, 2013, which deals with corporate fraud and carries a jail term of six months to 10 years, along with a fine that can extend to three times the amount involved in the alleged fraud.
 

Published on: May 27, 2026 9:50 AM IST