KOCHI: The Enforcement Directorate (ED) has registered a case to investigate alleged dubious transactions between Chief Minister Pinarayi Vijayan’s daughter T Veena’s firm Exalogic Solutions and Kochi-based Cochin Minerals & Rutile Ltd (CMRL). The ED’s enforcement case information report (ECIR) is similar to a first information report (FIR) filed in criminal cases.
ED’s investigation is based on an income tax department report that said CMRL paid Rs 1.72 crore to Exalogic under the guise of providing software services. Another national agency, the Serious Fraud Investigation Office (SFIO), is looking into the Rs 95 crore CMRL reportedly paid various persons and entities, including political leaders and trade unions. This had emerged during a 2019 I-T probe into CMRL.
ED officials said they have carried out a preliminary probe, but refused to divulge information about the ECIR, which also covers Prevention of Money Laundering Act (PMLA) cases that the ED has based on a predicate case probed by other agencies.
Though no criminal case has been registered, ED officers maintain that they can register one based on the I-T investigation into CMRL.
Now, ED will first collect evidence from CMRL by interrogating its officials. Similarly, it will verify CMRL’s books before proceeding with an investigation into Exalogic. The I-T report had revealed that CMRL had paid money to other political leaders and trade unions as well. The ED investigation is also likely to cover the reported recipients.
Earlier this year, an inquiry report by the Registrar of Companies (RoC) had highlighted major violations and fraud by Exalogic in its transactions with the CMRL.
The RoC report, whose findings came to light in January, had recommended an ED probe into any PMLA violation and a CBI probe for offences under the Prevention of Corruption Act.
Poll-eve ED case against Veena triggers slugfest
THIRUVANANTHAPURAM: The slapping of a money laundering case by the Enforcement Directorate on Chief Minister Pinarayi Vijayan’s daughter Veena T has triggered a political slugfest in the state ahead of the Lok Sabha elections. Hours after the ED filed the case, Pinarayi came down heavily on the Union government, accusing it of misusing central agencies to target opposition parties. Referring to his Delhi counterpart Arvind Kejriwal’s arrest, Pinarayi said it cannot be termed as either the first or the last. The future of democracy is in genuine danger, he warned.
Strongly defending Pinarayi in the issue, the CPM leadership chose to train its guns on both the UDF and the BJP. The ED move is to appease the two parties, the CPM said. Meanwhile, the opposition UDF chose to portray the ED case as a mere electoral stunt.
Referring to the ED action on allegations of fund transfer between Exalogic Solutions and CMRL, CPM state secretary M V Govindan said the ED action was a placatory ploy for Leader of Opposition V D Satheesan’s benefit. He pointed out that Satheesan has been demanding ED action against Pinarayi. “The ED is now filing cases against people just to support the BJP’s cause. The Centre had used ED and other central agencies for political gains in the last assembly election too,” he alleged. Govindan also criticised the Congress position on ED action against non-BJP leaders. The Congress has always criticised ED when the agency went after Congress leaders.
“When the ED arrested AAP leader Manish Sisodia, the Congress was asking why they did not arrest Kejriwal. The Congress would criticise the ED, only when their own leaders were targeted. It was Satheesan who kept harping about ED action against the CM,” he said.
The UDF, however, wants to ensure that the ED probe against the CM’s daughter does not get portrayed as a witch hunt against the CPM ahead of the elections.
Satheesan alleged that the ED probes into the gold smuggling case and the Karuvannnoor and Life Mission scams haven’t yielded any result so far. “The ED registering a case is a mere procedural formality. Earlier too, ED has registered cases on various issues. The ED seems to be toeing a different approach, when it comes to Kerala. It’s only an electoral stunt to create an impression that they (BJP and CPM) are not together,” Satheesan said.
Meanwhile, senior BJP leader V Muraleedharan said the CPM argument that Left leaders were being hunted down by Narendra Modi would not stand anymore. He also criticised Satheesan’s statement that the ED probe was an election stunt. Satheesan failed to raise the issue against the CM’s daughter in the assembly, he alleged.