CMRL case: ED likely to summon Veena

Kochi: Enforcement directorate (ED) began scrutiny of documents and records seized during the simultaneous raids held at 10 locations in the monthly payment case linked to opposition leader Pinarayi Vijayan’s daughter T Veena. ED will soon issue summons to those involved, including Veena, sources said.

According to ED, its probe found that proceeds of crime were generated by Cochin Minerals and Rutile Ltd (CMRL) management and bribes were paid to various persons. The search at Veena’s residences was based on ED findings that she allegedly received money from CMRL without rendering any services.

Sources said ED froze Rs 18.36 crore in total from 242 accounts, of which most were related to CMRL officials. The accounts include those of Veena and Exalogic Solutions Pvt Ltd.

ED conducted the search on Wednesday on CMRL, its directors S N Sasidharan Kartha, Saran S Kartha, Veena and her company Exalogic. The searches were conducted at 10 premises in Kottayam, Ernakulam, Kannur, Thiruvananthapuram and Bengaluru.

The evidence recovered is being analysed and devices, including those seized from Veena, will undergo analysis and further action will follow, officials said.

ED is investigating alleged fictitious cash expenses of Rs 182 crore over 15 years, allegedly revealed during serious fraud investigation office (SFIO) investigation, sources said. This amount is alleged to have been used for bribing various persons, warranting investigation.

Though CMRL’s several transactions, including those with politicians from multiple parties, are under ED radar, the probe in this phase was focused on transactions with Exalogic, sources said.

According to ED, Exalogic, a one-person company, received fraudulent payments of Rs 2.78 crore from CMRL under the guise of IT consultancy services. Further, Empower India Capital Investment Pt Ltd (EICPL), operated by CMRL MD Kartha, extended loans of Rs 50 lakh to Exalogic, despite Exalogic failing to make timely repayments, ED found.

CMRL had filed a writ petition against the ED inquiry citing that there was no predicate offence and court issued ‘no coercive action’ by ED in this case on April 12, 2024. High court on Tuesday dismissed CMRL’s writ petition, holding that initiating PMLA investigations was valid and didn’t require a predicate offence.