Published May 27, 2026 | 8:50 AM ⚊ Updated May 27, 2026 | 9:45 AM
Chief Minister Pinarayi Vijayan accompanied by his wife Kamala, daughter T Veena, and grandson Ishaan Vijay during the port visit on 26 April
Synopsis: The Enforcement Directorate carried out simultaneous searches at the residences of former chief minister Pinarayi Vijayan and his son-in-law, former minister and Beypore MLA Mohammed Riyaz, as part of its investigation into the alleged CMRL-Exalogic financial transactions case. The searches are connected to the ED’s money laundering investigation into allegations that CMRL made substantial payments to Exalogic Solutions, an IT firm owned by Veena Vijayan, without corresponding services being rendered.
The Enforcement Directorate (ED) on Wednesday, 27 May, carried out simultaneous searches at the residences of former Kerala chief minister and current Leader of the Opposition in the state Assembly Pinarayi Vijayan and his son-in-law, former minister and Beypore MLA Mohammed Riyas, as part of its investigation into the alleged CMRL-Exalogic financial transactions case.
ED teams conducted inspections at Pinarayi Vijayan’s rented residence near Bakery Junction in Thiruvananthapuram and at his family home in Kannur.
Sources said Pinarayi Vijayan, his daughter Veena Vijayan, who is among the accused in the case, and other family members were present at the Thiruvananthapuram residence when officials arrived in the early hours of Wednesday morning under tight security arrangements.
Simultaneously, searches were launched at Riyas’s residence in Kottuli, Kozhikode. Reports indicated that Riyas was not at home when the ED team reached the premises.
Tension prevailed at Pinarayi Vijayan’s residence in Kannur as a large number of CPI(M) workers converged on the premises, raising slogans against the Centre and the Enforcement Directorate (ED) following the agency’s raid.
Several senior CPI(M) leaders were seen arriving at the residence amid heightened political activity, while police stepped up security arrangements in the area to maintain law and order.
Reacting to the ED action, Riyas, in a social media post, declared that the party would not bow before the Sangh Parivar and would continue its struggle “till the last breath.”
Meanwhile, senior CPI(M) leader P Jayarajan alleged that the “mastermind” behind the ED raid was Chief Minister VD Satheesan.
He linked the development to Satheesan’s reported meetings with Prime Minister Narendra Modi and the Union Finance Minister on Tuesday, claiming that a larger conspiracy was underway to target the CPI(M), damage its image and malign its leadership.
Jayarajan asserted that the party would respond to what he described as a politically motivated attempt to weaken the organisation and its leaders.
Also Read: Kerala CM’s daughter Veena denies reports of admitting to receiving payment in CMRL case
The agency is also conducting searches at multiple locations linked to Cochin Minerals and Rutile Ltd. (CMRL), including the company’s offices and the residence of its Managing Director, Sasidharan Kartha.
In total, inspections are reportedly underway at 12 locations across the state.
The searches are connected to the ED’s money laundering investigation into allegations that CMRL made substantial payments to Exalogic Solutions, an IT firm owned by Veena Vijayan, without corresponding services being rendered.
The agency has been probing whether the transactions violated provisions of the Prevention of Money Laundering Act (PMLA).
The latest action comes a day after the Kerala High Court permitted the ED to continue its investigation into the controversial Exalogic-CMRL deal, clearing the way for further enforcement measures in the case.
On Tuesday, the high court dismissed a petition filed by senior company officials seeking to quash ED proceedings in the controversial case linked to payments made to Veena Vijayan.
Justice TR Ravi pronounced the verdict, rejecting the challenge against the Enforcement Case Information Report (ECIR) registered by the ED.
Soon after the verdict, counsel for CMRL sought a two-week extension of the interim protection that had shielded company officials from appearing before the ED. The court, however, declined the request.
The petition had been filed by CMRL Managing Director SN Sasidharan Kartha, Chief Financial Officer KS Suresh Kumar, Senior Manager NC Chandrashekharan and Senior Officer Anju Rachael Kuruvila.
They had sought to halt the ED investigation and stay further proceedings, including the summons issued to company representatives.
The controversy traces its origins to findings made by the Income Tax Department in January 2019 during investigations into Kochi-based Cochin Minerals and Rutile Limited (CMRL). According to records examined by tax authorities, the company allegedly maintained parallel accounts in which payments to politicians, public officials, police personnel and media organisations were concealed under other expense heads.
A key element of the investigation was a set of diary entries and internal notes reportedly maintained by the company’s chief financial officer. Income Tax officials claimed these records contained abbreviated references such as “PV” and “OC”, allegedly linked to individuals who were recipients of payments.
Statements recorded by investigators reportedly indicated that the abbreviations referred to Pinarayi Vijayan and former chief minister Oommen Chandy, although the exact amounts allegedly associated with each entry were not specified.
The Income Tax Department found that CMRL had shown expenditure of ₹135.54 crore between the financial years 2013-14 and 2019-20 through records that were later questioned by investigators. The company subsequently approached the tax settlement mechanism seeking relief on tax demands amounting to ₹73.38 crore.
According to findings cited by tax authorities, company employees stated that certain payments were entered in the books as transportation expenses despite allegedly being routed to politicians, government officials, police officers and others. Statements attributed to company staff claimed that such payments were made on the instructions of Managing Director SN Sasidharan Kartha and were often delivered either at official premises or private residences.
Tax officials argued that such expenditures, if made to public servants, would constitute illegal payments and therefore could not qualify for deductions under Section 37 of the Income Tax Act, 1961. The department further alleged that the company generated substantial unaccounted income through these arrangements.
Investigators also cited material recovered during searches conducted at the residence of the company’s chief financial officer. The documents reportedly contained abbreviated names of alleged recipients, while corresponding statements recorded by officials identified several political leaders, including PK Kunhalikutty, the late Oommen Chandy, Pinarayi Vijayan, Ramesh Chennithala and VK Ebrahim Kunju. However, the records did not specify the individual amounts allegedly paid.
The ED probe stems from allegations that CMRL made questionable payments to Veena Thaikandiyil (Veena Vijayan) and her firm, Exalogic Solutions Pvt. Ltd., besides other alleged illegal financial transactions involving public servants.
The agency is investigating whether the transactions were linked to bribery and money laundering offences.
In 2023, the IT Department recommended a probe by the Serious Fraud Investigation Office (SFIO), a statutory corporate fraud investigating agency in India, which functions under the Ministry of Corporate Affairs (MCA).
In 2024, the MCA ordered an investigation into the affairs of Exalogic Solutions. The ministry has asked the Registrar of Companies (ROC) in Bengaluru to initiate a probe against her.
This came after the Bengaluru ROC wrote to the MCA that the financial dealings between Kochi-based mineral sand processing firm Cochin Minerals and Rutile Limited (CMRL) and Veena’s software company would fall under the Prevention of Money Laundering Act of 2002.
The ROC also recommended investigations into the dealings by central investigation agencies like the Enforcement Directorate (ED) and the CBI.
The ROC pointed out that Exalogic failed to provide documents supporting its claim that it accepted money in return for services rendered to CMRL.
It may be noted that the public-sector Kerala State Industrial Development Corporation (KSIDC) holds a 13.4 percent stake in CMRL.
The ROC report stated that, based on the preliminary investigation, it appeared that both firms committed offences that would invite jail terms and penalties under the Companies Act.
Also Read: Pinarayi Vijayan’s gunman among five police personnel suspended in Nava Kerala assault case
Veena is also facing the charge of committing financial fraud involving CMRL for over a year, with the Income Tax (I-T) Interim Settlement Board ruling in 2023 that the private company paid Exalogic Solutions ₹1.72 crore between 2017 and 2020.
The agency observed that despite the money being accepted, no service was rendered to CMRL.
Meanwhile, sources in the MCA said it was an illegal transaction and that a probe would be conducted under a joint director at the Office of the Director General of Corporate Affairs in Bengaluru.
Initial investigations by the ministry found that Veena had obtained dormant status for her IT company by suppressing details on the pending proceedings with the Registrar of Companies.
According to ROC officials, Veena violated Section 448 of the Companies Act, which, if proven, could result in imprisonment and a penalty. They said the developments started in 2020 after the ROC received a complaint against Exalogic Solutions and Veena alleging that crores of rupees were paid illegally from CMRL.
Then, Bengaluru ROC DS Varun summoned Veena after starting the probe. As the probe progressed, Veena applied in November 2022 for dormant status without revealing the pending proceedings against the company. Officials said this was a clear violation of the Companies Act.
As per the findings of the interim settlement board, CMRL allegedly paid ₹71 lakh to Exalogic and ₹55 lakh to Veena personally between 2017 and 2019.
The board found that the government-owned corporation’s role was significant in appointing key management personnel to CMRL.
According to the ROC, Exalogic Services Private Limited is a private firm (a one-person company) founded on 19 September 2014, by Veena, with an authorised share capital of ₹1 lakh. It is believed to be into software solutions. The company’s registered address is in Bengaluru.
The MCA reportedly possesses a statement from key CMRL management personnel to the I-T Department admitting that money was paid to Veena without service.
(With inputs from Dileep V Kumar.)
