The Enforcement Directorate (ED) has sought the attachment of properties linked to the accused in the CMRL-Exalogic money laundering case, alleging that Cochin Minerals and Rutile Ltd (CMRL) paid ₹2.78 crore to Veena T. and Exalogic Solutions Pvt. Ltd. without receiving any services in return.
In a report submitted before the Adjudicating Authority, the ED claimed that the payments were made because of Veena's personal relationship with the then Kerala Chief Minister Pinarayi Vijayan. The agency cited the statement of CMRL founder and former managing director S.N. Sasidharan Kartha, who allegedly told investigators that no services were rendered by Exalogic despite the payments.
The probe also alleges that Kartha masterminded the diversion of ₹182 crore from CMRL over a 15-year period. According to the ED, around ₹139 crore was shown as fictitious expenditure under sludge handling and transportation through self-generated vouchers without supporting records, while another ₹43 crore was allegedly siphoned off using inflated vendor invoices. The agency claimed that vendors withdrew the excess amounts in cash and returned them to CMRL officials after retaining a commission.
The ED further alleged that the payments to Exalogic for software-related work were unsupported by evidence of actual deliverables. It also claimed that Exalogic was financially weak, with a negative net worth and minimal turnover, making it largely dependent on funds received from CMRL. The report additionally alleged that loans extended by Empower India Capital Investments Pvt. Ltd., a company linked to Kartha, were later routed out through banking channels.
The case has been registered under the Prevention of Money Laundering Act (PMLA) based on a prosecution complaint filed by the Serious Fraud Investigation Office (SFIO). The investigation stems from alleged financial irregularities detected after an Income Tax Department raid on CMRL in 2019.
At the time of filing the report, CMRL, Veena T. and Pinarayi Vijayan had not responded to the allegations. Veena's husband and MLA P.A. Mohammed Riyas said he was unaware of the details of the report and that they were cooperating with the investigation.
