KOCHI: The enforcement directorate (ED) has indicated that the searches conducted at multiple locations in Kerala and Bengaluru in connection with the Cochin Minerals and Rutile Limited (CMRL) case were only the beginning of a wider exercise that could extend to more individuals allegedly linked to the suspected financial irregularities and bribery network.
Highly-placed sources said the central agency has intensified its probe following the large-scale searches carried out on May 27 at 10 premises linked to CMRL, its top executives, and Exalogic Solutions Private Limited, owned by Veena T, daughter of former chief minister Pinarayi Vijayan.
The ED, in its official statement issued late on Wednesday, said the searches were part of a probe under the Prevention of Money Laundering Act (PMLA), based on the findings of the Serious Fraud Investigation Office (SFIO) which had alleged fictitious expenses, illegal diversion of funds, and payments allegedly made as bribes through fabricated transactions.
A source familiar with the investigation said, “The searches were not an isolated exercise. The agency believes the money trail extends beyond the currently named individuals and companies. More people are likely to come under scrutiny in the coming days.”
According to the ED, the SFIO probe found that fictitious cash expenses amounting to nearly Rs 182 crore were allegedly booked over a span of 15 years and that large sums were diverted through related entities and fabricated transactions.
The agency also alleged that Exalogic received Rs 2.78 crore from CMRL under the guise of IT consultancy services without rendering corresponding services. The ED further claimed that Empower India Capital Investment Private Limited (EICPL), allegedly operated by CMRL managing director S N Sasidharan Kartha, had extended loans totalling Rs 50 lakh to Exalogic despite the company allegedly failing to make timely repayments.
The ED had frozen around Rs 18.36 crore spread across nearly 242 bank accounts identified during the searches on Wednesday.
However, the agency did not specify to whom the accounts belonged. Several digital devices, financial records, and investment documents were also seized during the operation, the agency said.
Meanwhile, Pinarayi said on Friday that the ED froze one bank account belonging to Veena.
Sources said the ED top brass has taken a serious view of the incident in which vehicles carrying ED and CRPF personnel were attacked using bricks and iron rods by a crowd outside Pinarayi’s residence.
“The attack has been viewed very seriously at higher levels. There are discussions on strengthening manpower deployment and security arrangements for officers handling this case,” a source said.
A former ED official told TNIE that if similar incidents recur during future searches or questioning proceedings, the agency could even consider shifting portions of the process outside Kerala or conducting key proceedings directly under tighter supervision from its headquarters.
“The ED generally prefers to conduct field-level operations through its zonal offices. But repeated security threats can force agencies to rethink operational strategies,” the former official said.
Sources said both state intelligence agencies and central security agencies are now maintaining close surveillance around the ED office in Kochi amid concerns over possible protests or untoward incidents linked to the politically sensitive case.
242 bank accounts frozen
The ED said around Rs 18.36 crore spread across 242 bank accounts were frozen during the searches. However, the agency did not disclose whose accounts were frozen.
Sources said the ED considers the May 27 searches only the beginning of a wider probe, and more individuals could come under scrutiny in the coming days.
CMRL FILES APPEAL IN PAY-OFF CASE
Kochi: Cochin Minerals and Rutile Ltd (CMRL) and its officials on Friday filed an appeal before the Division Bench of the Kerala High Court seeking to set aside a single judge’s order dismissing the company’s plea against the Enforcement Directorate’s (ED) probe into the alleged illegal payments made by the company to IT firm Exalogic Solutions, owned by former CM Pinarayi Vijayan’s daughter, T Veena.
The single judge had stated that the issuance of summons was solely for the purpose of investigation and did not require the registration of an FIR. In the appeal, CMRL submitted that the single judge had erred in ignoring its request to quash the Enforcement Case Information Report (ECIR) and all investigations arising from it, and had proceeded on an incorrect assumption that the company had challenged only the summons issued by the ED.
