The Enforcement Directorate on Tuesday conducted searches at 10 locations linked to Cochin Minerals and Rutile Limited, its directors, and entities associated with Veena, the daughter of former Kerala chief minister Pinarayi Vijayan, in connection with a corporate fraud and money laundering case.
The searches were carried out in Kottayam, Ernakulam, Kannur, Thiruvananthapuram, and Bengaluru at premises linked to CMRL Managing Director SN Sasidharan Kartha, Saran S Kartha, Veena, and her company Exalogic Solutions Private Limited.
According to the ED, the case originated from an Income Tax Department search in January 2019, during which fake expenses amounting to nearly Rs 130 crore were detected. The agency said these expenses were later admitted before the Income Tax Settlement Commission, which also recorded findings related to bribe payments by CMRL.
Based on those findings, the Serious Fraud Investigation Office launched a probe into the company. The ED later began a money laundering investigation under the Prevention of Money Laundering Act.
The agency said the SFIO filed a prosecution complaint on April 3, 2025, before a court in Ernakulam against Sasidharan Kartha and 12 others, alleging corporate fraud. According to the complaint, fictitious cash expenses of around Rs 182 crore were created over 15 years and used for bribery payments.
The SFIO also alleged that Rs 91 crore was paid towards transport services to firms owned by the Kartha family.
The ED alleged that one of the fake expenses involved payments made to Exalogic Solutions Pvt Ltd, owned by Veena, for IT consultancy services. The agency claimed the company received Rs 2.78 crore despite “no services being rendered”.
It further alleged that a company linked to Sasidharan Kartha extended loans worth Rs 50 lakh to Exalogic despite delayed repayments.
The ED said the Kerala High Court on May 26 dismissed a petition filed by CMRL challenging the probe and upheld the validity of the money laundering investigation.
During the searches, officials recovered documents, digital records, and financial details. The agency said it froze around Rs 18.36 crore across 242 bank accounts.
The ED also claimed one of its search teams was attacked after a raid at a Thiruvananthapuram residence where Veena and Pinarayi Vijayan were present. According to the agency, vehicles carrying ED and CRPF personnel were attacked with bricks and iron rods, injuring a driver. An FIR has been registered by the Thiruvananthapuram Police.
The investigation is ongoing.