The Enforcement Directorate (ED) has uncovered evidence of hawala transactions while investigating alleged corporate fraud and bribery involving Cochin Minerals and Rutile Ltd (CMRL) and Exalogic Solutions. The agency said it seized documents and other materials during searches at nine premises in Kozhikode and plans to initiate legal action.
According to the ED, handwritten accounts maintained by Veena T, daughter of Leader of Opposition Pinarayi Vijayan, indicate that she handled funds beyond her known sources of income. The agency said the entries recorded amounts in addition to payments received from CMRL.
The investigation found that CMRL management, led by S N Sasidharan Kartha, allegedly generated proceeds of crime and distributed bribes to several individuals. The ED has identified Veena as one of the alleged recipients, stating that her now-defunct firm, Exalogic Solutions, received payments from CMRL despite allegedly providing no corresponding services.
During searches conducted on May 27 at premises linked to Veena and CMRL promoters, investigators recovered handwritten financial records containing details of individuals, amounts handled and spent, and overseas transfers. The records reportedly showed around AED 3.49 lakh, equivalent to approximately ₹85 lakh, transferred to Dubai, while transactions recorded in Indian currency totalled about ₹20.05 crore.
Electronic devices seized from Veena also contained an image of a SIM card registered in another person's name and allegedly intended for use with a Wi-Fi router. The ED suspects the arrangement may have been used for internet-based communications.
The ED initiated its money-laundering investigation under the Prevention of Money Laundering Act based on findings from the Serious Fraud Investigation Office (SFIO).
The SFIO filed a prosecution complaint on April 3, 2025, following an investigation into alleged corporate fraud at CMRL. The probe found that the company had recorded fictitious cash expenses of around ₹182 crore over 15 years, which were allegedly used for making bribe payments.
Among the expenses identified was a payment to Veena's one-person company, Exalogic Solutions Pvt Ltd. The ED said the firm received a total of ₹2.78 crore from CMRL, allegedly under the cover of IT consultancy services.
