Thiruvananthapuram, May 28 (IANS) The Enforcement Directorate’s probe into the controversial financial dealings between Cochin Minerals and Rutile Ltd (CMRL) and Exalogic Solutions has entered a critical phase, placing former Kerala Chief Minister Pinarayi Vijayan and his daughter T. Veena under mounting pressure.
Highly placed sources said the ED is actively examining legal options, including custodial interrogation and possible arrest, as officials analyse digital evidence and financial records seized during coordinated raids across Kerala and Bengaluru on Wednesday.
The developments have triggered a major political storm in Kerala, coming just ahead of the policy address of the newly elected UDF government in the Assembly.
The issue is also expected to dominate discussions when the three-day Assembly session begins on June 1, with all eyes now on the BJP’s three-member legislative party and the aggressive stand likely to be adopted by the treasury benches against Vijayan.
At the centre of the investigation are allegations that Veena and her firm, Exalogic Solutions, received Rs 2.78 crore from CMRL without providing any legitimate IT or consultancy services.
According to key findings in the Serious Fraud Investigation Office (SFIO), Veena personally received Rs 5 lakh every month, while Exalogic received another Rs 3 lakh monthly from the mineral sands company.
Together, the payments totalled Rs 8 lakh a month, amounting to Rs 96 lakh annually and Rs 2.78 crore overall.
The payments were allegedly made between January 2017 and June 2020, shortly after Pinarayi Vijayan assumed office as Chief Minister.
Investigators reportedly found that Exalogic, which was operating at a loss, depended heavily on CMRL as its principal source of income during the relevant period.
More significantly, the SFIO is said to have concluded that Veena failed to produce any documentary evidence proving that Exalogic had rendered services to CMRL.
The report further states that even after an Income Tax Department inspection in January 2019 flagged payments worth Rs 1.72 crore to Veena, money allegedly continued flowing from CMRL to her accounts.
Investigators have also pointed to the fact that after ending its arrangement with Exalogic, CMRL later entered into an agreement with another firm, ATN Technologies, for IT services, a detail the ED is expected to use to question the legitimacy of the earlier transactions.
As part of the widening probe, the ED has already frozen nearly Rs 18.36 crore spread across 242 bank accounts linked to the case.
Officials are now trying to establish the precise source and movement of funds routed through these accounts before initiating stronger legal action.
There are indications that Veena Vijayan may soon move court seeking anticipatory bail to avoid possible arrest.
However, ED officials are expected to strongly oppose such a plea, arguing that custodial interrogation is essential given the nature of the financial trail uncovered during the investigation.
Meanwhile, the case acquired a sharper political edge following attacks on ED officials and CRPF personnel outside Pinarayi Vijayan’s residence during the searches.
Central agencies are now learnt to be considering enhanced CRPF deployment for future operations linked to the probe.
On Wednesday and Thursday, Chief Minister V.D. Satheesan was tight-lipped when asked about the ED raid and the events that were witnessed at Vijayan’s house that led to violence and the arrest of eight CPI(M) workers.
With the ED intensifying its investigation and the SFIO findings now out in the public domain, the CMRL-Exalogic case is rapidly turning into one of the most politically sensitive financial probes Kerala has witnessed in recent years.
–IANS
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