KOZHIKODE: A fresh round of Enforcement Directorate searches in Kozhikode on Tuesday has widened the agency’s scrutiny of individuals and business interests linked to former Kerala Tourism Minister P.A. Mohammed Riyas, as investigators pursue alleged financial transactions connected to the CMRL-Exalogic case.
The searches, covering eight locations in and around Kozhikode, focused on people and establishments believed to have links with Riyas and T. Veena, daughter of former Chief Minister and current Leader of the Opposition Pinarayi Vijayan. Veena is the sixth accused in the case involving alleged payments made by Cochin Minerals and Rutile Limited (CMRL) to various persons and entities.
One of the early searches was carried out at the East Hill residence of N. Nandulal. An ED team of four officials reached the house at about 6 am. Nandulal is the Destination Coordinator of the Kozhikode District Tourism Promotion Council and DYFI East Hill area secretary. He is also known to be close to Riyas.
The agency simultaneously began examining properties associated with CPM district secretariat member P.N. Nikhil. An advertising firm owned by Nikhil has operations in Kozhikode and elsewhere in Kerala, and investigators are looking into his reported association with Riyas.
Officials reached Nikhil’s ancestral residence on A.P. Road at Karuvanthuruthy in Feroke at around 6.45 am. Three vehicles carrying ED personnel arrived at the premises. Officers searched different rooms and checked cupboards and other areas of the house before completing the operation at approximately 9.10 am. Sources said no significant material was recovered from the residence during the search.
The investigation subsequently moved to a flat owned by Nikhil at Ashokapuram in Kozhikode. Nikhil, who was receiving treatment at a hospital, was brought to the flat before the ED proceedings commenced.
Another location under scrutiny is Laker India Corp, a Kozhikode-based company in which Veena has an investment. The agency is examining the company’s financial dealings as part of its wider probe. Earlier, the ED had frozen investments amounting to Rs 16.5 lakh held in Veena’s name in connection with the investigation.
The latest searches are understood to have been triggered by material gathered during the agency’s earlier investigation. Investigators reportedly examined information contained in Veena’s diary and documents obtained during the ED searches conducted on May 27.
According to information emerging from that earlier operation, Veena’s account had a balance of Rs 1,37,088, while Exalogic Solutions’ account showed Rs 27,585. Laker India Corp’s account was reported to have Rs 15,57,414. ED teams are also believed to have examined the homes and business establishments of other individuals connected with the company.
Tuesday’s action follows the extensive searches conducted by the ED on May 27 at several locations, including Pinarayi Vijayan’s rented residence at Bakery Junction in Thiruvananthapuram, his ancestral house in Kannur and the residence of Riyas, who is married to Veena. During those searches, the agency identified and froze Rs 18.36 crore held across 242 accounts.
The investigation centres on alleged financial dealings between Exalogic Solutions, a now-defunct company founded by Veena, and CMRL. The matter reached the ED after findings by the Serious Fraud Investigation Office (SFIO), which examined CMRL’s financial records following information obtained by the Income Tax Department.
Alleged Rs 182-crore fictitious expenditure
The SFIO has alleged that CMRL recorded fictitious expenditure of nearly Rs 182 crore over a period of about 15 years. Investigators suspect that funds shown under these expenses were transferred to individuals and entities through transactions that allegedly did not comply with corporate regulations.
CMRL had earlier disclosed the alleged fictitious expenses before the Income Tax Settlement Commission. The subsequent SFIO investigation examined the transactions and related financial records, while the ED initiated a parallel probe under the Prevention of Money Laundering Act (PMLA).
The SFIO has filed a prosecution complaint before the Additional Sessions Court-VII, Ernakulam, against CMRL chairman and managing director Sasidharan Kartha and 12 others, alleging corporate fraud and offences connected with money laundering.
The SFIO has also alleged that Sasidharan Kartha and his son received a combined remuneration of Rs 30.63 crore between 2015-16 and 2022-23 despite the company not declaring dividends during the period. The agency further alleged that CMRL paid about Rs 91 crore for transport-related services to companies controlled by members of Kartha’s family.
The Kerala High Court had earlier allowed the ED’s PMLA investigation to proceed after dismissing a writ petition filed by CMRL on May 26, 2026. The court observed that a scheduled offence existed in the case following the SFIO’s prosecution complaint, enabling the money-laundering investigation to continue.
Financial records and other materials gathered by the SFIO were subsequently made available to the ED following the intervention of the special court. The central agency is now examining the wider network of transactions and the individuals and companies allegedly connected to the money trail.
