The Enforcement Directorate (ED) is carrying out raids at eight locations in Kozhikode, Keralam, as part of the probe into the alleged financial transactions between Exalogic Solutions, a now-defunct firm owned by former Chief Minister Pinarayi Vijayan’s daughter T. Veena, and Cochin Minerals and Rutile Limited (CMRL), in the alleged pay-off case.

The raids are a follow-up to the search operations carried out on May 27, 2026 at Mr. Vijayan’s then rented house at Bakery Junction in Thiruvananthapuram, his ancestral home in Kannur, and the residence of former Public Works Minister and Ms. Veena’s husband P.A. Mohammed Riyas. The ED had frozen ₹18.36 crore in 242 accounts identified during those search operations.

The Kerala High Court, while dismissing a writ petition filed by CMRL on May 26, 2026, held that investigations initiated under the Prevention of Money Laundering Act (PMLA) remain valid as they do not require a predicate offence. The court further observed that, as of the date of judgment, a predicate offence existed since the Serious Fraud Investigation Office (SFIO) had filed its prosecution complaint with a scheduled offence under PMLA.

Fake expenses

Previously, CMRL had admitted to the fake expenses before the Income Tax Settlement Commission. Subsequently, the SFIO under the Union Ministry of Corporate Affairs launched a probe based on the Income Tax Department’s findings. The ED also initiated investigations under PMLA.

The SFIO filed a prosecution complaint invoking charges under PMLA for corporate fraud against Sasidharan Kartha, chairman and managing director of CMRL, and 12 others before the Additional Sessions Court – VII, Ernakulam. According to the SFIO, Mr. Kartha and his son received cumulative remuneration of ₹30.63 crore between 2015-16 and 2022-23, despite no dividend payments.

The agency also claimed to have uncovered alleged fictitious cash expenses of ₹182 crore over 15 years. It was further alleged that CMRL paid ₹91 crore towards transport services to companies owned by Mr. Kartha’s family.

One of the alleged fake expenses was the payment to Ms. Veena. Her company, incidentally a one-person firm, allegedly received fraudulent payments of ₹2.78 crore from CMRL under the guise of IT consultancy services. Further, Empower India Capital Investment Private Limited (EICPL), operated by Mr. Kartha, allegedly extended loans totalling ₹50 lakh to Exalogic despite its failure to make timely repayments.

Published - August 18, 2026 11:33 am IST