ED Intensifies ₹182-Crore Money Laundering Probe Into CMRL, Scrutiny Falls on Veena-Vijayan

New Delhi: Alleged fraudulent payments involving Veena, daughter of former Kerala chief minister Pinarayi Vijayan, have come under the scanner as the Enforcement Directorate (ED) stepped up its ₹182-crore money laundering investigation linked to Cochin Minerals and Rutile Limited (CMRL). Investigators associated with the probe indicated that “one of the fake expenses booked by CMRL is towards the payment to Veena.”

Officials connected to the case further stated that Veena’s company, Exalogic Solutions Private Limited, described as a one-person company, allegedly received fraudulent payments amounting to ₹2.78 crore from CMRL under the pretext of providing Income Tax consultancy services.

According to officials familiar with the matter, Empower India Capital Investment Private Limited (EICPL), which is operated by SN Sasidharan Kartha, managing director of CMRL, allegedly provided loans totalling ₹50 lakh to Exalogic despite the company not repaying the dues on time.

CMRL is a publicly listed company in which 48.75 per cent of the shares are held by the general public, while 13.41 per cent shares are owned by Kerala State Industrial Development Corporation, a Kerala government public sector undertaking, as of March 31, 2023. Officials said that Sasidharan Kartha and his son, Saran S Kartha, who serves as the joint managing director of CMRL, exercise substantial control over the company.

The Income Tax Department had conducted searches at CMRL in January 2019, during which investigators reportedly identified fake expenses amounting to nearly ₹130 crore.

Officials stated, “The fake expenses were also admitted by CMRL before the Income Tax Settlement Commission.”

They further said, “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.”

The ED subsequently initiated proceedings under the Prevention of Money Laundering Act (PMLA) on the basis of the SFIO investigation. However, CMRL challenged the ED action before the Kerala High Court, arguing that no predicate offence existed. On April 12, 2024, the High Court directed that no coercive action be taken by the ED in the matter.

Later, on April 3, 2025, the SFIO filed a prosecution complaint for corporate fraud against Sasidharan Kartha and 12 others before the Additional Sessions Court-VII in Ernakulam, Kerala. The SFIO complaint reportedly included a scheduled offence under the PMLA.

According to the SFIO, Sasidharan Kartha and his son allegedly drew cumulative remuneration of ₹30.63 crore between the financial years 2015-16 and 2022-23 despite the company not paying any dividends during that period.

Officials also claimed 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 added.

In a significant development, the Kerala High Court on May 26, 2026, dismissed the writ petition filed by CMRL and ruled that “initiation of PMLA investigations is valid and does not require predicate offence to initiate investigations.”

The court also observed that by the time of the judgment, the predicate offence existed because the SFIO had already filed its prosecution complaint containing a scheduled offence under the 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 noted.

Following the High Court order, the ED conducted extensive searches early Wednesday across nearly 10 premises connected to the management of CMRL and Veena in Kannur, Ernakulam, Thiruvananthapuram, and Bengaluru in an effort to gather evidence related to money laundering activities.

Officials stated that intelligence gathered by the agency indicated Veena was residing with her father, P Vijayan, in Thiruvananthapuram. Consequently, the premises where she was staying were also searched. “When the search team reached the premises where Veena was residing, her father, P Vijayan, was also present,” officials said.

Authorities added that details relating to investments and bank fixed deposits were recovered during the searches and are currently being analysed.

The controversy has acquired major political significance in Kerala after allegations emerged that CMRL had allegedly made questionable payments to Exalogic Solutions Pvt Ltd, the IT firm owned by Veena.

The accusations concerning monthly payments allegedly made by CMRL to Exalogic without any corresponding services being rendered triggered a major political storm in the state. Opposition parties repeatedly targeted Pinarayi Vijayan and accused his family of benefiting from suspicious financial transactions.

The issue has continued to remain among the most politically sensitive controversies faced by the Vijayan government.

By fLEXI tEAM