ED raids linked to former Kerala CM Pinarayi Vijayan: What is the CMRL-Exalogic case?
The case has become politically sensitive because it directly involves the family of Pinarayi Vijayan, who served as chief minister during much of the period under investigation. We explain
No court has convicted Veena T, Exalogic, CMRL or Pinarayi Vijayan in the case so far. (Express Photo by Tashi Tobgyal) Pinarayi Vijayan ED raid: The Enforcement Directorate (ED) on Wednesday (May 27) conducted searches at 10 locations linked to former Kerala Chief Minister Pinarayi Vijayan, his family members and senior executives of Cochin Minerals and Rutile Limited (CMRL) as part of its money laundering probe into the alleged payments made to his daughter Veena T’s IT firm, Exalogic Solutions.
According to sources, searches are underway in Thiruvananthapuram, Kochi, Kozhikode, Kannur and Bengaluru. The premises being searched include Vijayan’s rented residence in Thiruvananthapuram, his house in Pinarayi in Kannur district, the Kozhikode residence of his son-in-law and former minister Muhammed Riyas, the CMRL office and homes of its senior executives, as well as the homes of senior CMRL executives, including managing director Sasidharan Kartha.
The searches came a day after the Kerala High Court dismissed CMRL’s petition seeking to quash the ED proceedings in the case.
The case has become politically sensitive because it directly involves the family of Pinarayi Vijayan, who served as chief minister during much of the period under investigation.
What was the case?
CMRL is a Kochi-based minerals and chemicals company operating in Kerala’s mineral-sand sector. Kerala State Industrial Development Corporation, a state enterprise is one of the share holders in the entity.
The case emerged in 2023 after Income Tax raids at CMRL, during Vijayan’s tenure as Kerala chief minister, when investigators alleged that the company had paid about Rs 1.72 crore to Exalogic Solutions, an IT firm linked to Veena T, between 2017-18 and 2018-19 under agreements for software development, management and consultancy services.
According to the Income Tax department, Exalogic had not provided any such services despite receiving the payments. The department’s Interim Board of Settlement subsequently termed the transaction an “illegal payment”.
The CMRL MD allegedly made illegal payments to politicians, parties, police officials, media houses, journalists, trade unions and others to “ensure smooth running of business”.
The CMRL case came up before the Interim Board for Settlement after CMRL and Kartha moved a settlement application as a sequel to an Income Tax raid in 2019, which unearthed the illegal handing over of money to various sources, which were not related to the firm’s business.
The Enforcement Directorate later launched a money laundering probe and questioned CMRL officials. The Serious Fraud Investigation Office (SFIO), under the Ministry of Corporate Affairs, also opened an investigation into Exalogic and examined wider financial transactions linked to CMRL. During the probe, investigators alleged that the company had made substantial payments to several politicians whose identities were recorded through abbreviations in documents seized during the Income Tax searches. The alleged beneficiaries, according to investigators, belonged to multiple political parties.
The SFIO investigation later estimated the alleged benefit to Exalogic at about Rs 2.73 crore.
The Income Tax proceedings alleged that the payments were falsely booked as business expenses despite no services being delivered. The SFIO probe later widened into CMRL’s broader financial dealings, while the ED is examining whether the transactions generated proceeds of crime under the Prevention of Money Laundering Act (PMLA).
According to reports, investigators are also examining whether the alleged payments were part of a broader arrangement linked to regulatory and operational clearances for the company.
Investigators have not publicly produced evidence in court establishing that the alleged payments were linked to bribery or personal enrichment.
How have Veena and the CPI(M) responded?
Veena T and Exalogic have denied wrongdoing and maintained that the payments were part of legitimate business arrangements. The CPI(M) has repeatedly described the central agency probes as politically motivated. No court has convicted Veena T, Exalogic, CMRL or Pinarayi Vijayan in the case so far.
Following the searches on Wednesday, the CPI(M) and other Left parties organised protests across Kerala, alleging that the ED action was politically motivated and aimed at targeting opposition leaders.
Opposition parties across India have repeatedly accused the ED of selectively targeting opposition leaders and state governments through high-profile investigations. The BJP and the Union government have rejected the allegation, saying the agency acts on evidence.
What happens next?
With the Kerala High Court refusing to quash the ED proceedings, investigators are expected to continue examining financial records, electronic devices and statements collected during the searches. The agency could summon additional individuals for questioning and may seek attachment of assets if it concludes that proceeds of crime were generated through the alleged transactions.
The ED is expected to analyse documents, electronic devices and financial records seized during the searches, and could summon additional individuals for questioning as the probe progresses.
The SFIO proceedings and related court challenges are also expected to continue. Any further coercive action, including arrests, would depend on the findings of the investigation and subsequent court proceedings.
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