The Enforcement Directorate (ED) has alleged that Cochin Minerals and Rutile Ltd (CMRL) made payments of Rs 2.78 crore to Veena T and her company Exalogic Solutions Pvt Ltd due to her personal relationship with then Kerala Chief Minister Pinarayi Vijayan, according to a report filed before the Adjudicating Authority.
The report was submitted in connection with a money laundering case against Kochi-based CMRL, in which the ED has sought the attachment of properties belonging to the accused.
The investigation relates to allegations that CMRL paid Rs 2.78 crore to Exalogic without receiving any services in return.
According to the ED report, S N Sasidharan Kartha, founder and former managing director of CMRL, admitted during questioning that payments were made to Veena and Exalogic despite no services being provided, citing her relationship with the then chief minister.
The agency said Kartha, who allegedly exercised control over CMRL, orchestrated a scheme to misappropriate Rs 182 crore over 15 years. It alleged that Rs 139 crore was shown as fictitious cash expenses under “Sludge Handling and Transportation Expenses” through self-generated vouchers without supporting documents or actual services.
The ED further alleged that Rs 43 crore was diverted through inflated invoices issued by vendors, who allegedly withdrew excess payments in cash and returned the money to CMRL officials after retaining commissions.
The agency described these transactions as “circular payments” made from CMRL accounts and allegedly taken back in cash.
The report said payments to Exalogic for alleged software services were not supported by evidence of actual work. It added that statements from Kartha and others, including Veena, indicated that no deliverables had been provided to CMRL.
The ED also alleged that Exalogic had a weak financial position, with a negative net worth of Rs 66 lakh and a standalone turnover of only Rs 5 lakh, making it largely dependent on funds received from CMRL.
The agency further claimed that Empower India Capital Investments Pvt Ltd, a non-banking financial company linked to Kartha, provided loans of Rs 50 lakh to Exalogic, which were allegedly later routed out through bank transfers.
CMRL, Veena and Pinarayi Vijayan had not responded to the allegations at the time of filing the report.
Veena’s husband and MLA P A Mohammed Riyas declined to comment, saying he was unaware of the details and that they were cooperating with the investigation.
The ED registered the case under the Prevention of Money Laundering Act based on a prosecution complaint filed by the Serious Fraud Investigation Office before a Kochi court. CMRL had come under the scanner of central agencies after an Income Tax Department raid in 2019 allegedly found financial irregularities, including suspected fictitious expenditure.
(With inputs from PTI)
