Ernakulam: A Ministry of Corporate Affairs probe has flagged irregularities in financial dealings between Exalogic Solutions Pvt Ltd — a software firm linked to Veena T, daughter of former Kerala chief minister Pinarayi Vijayan — and publicly listed Cochin Minerals and Rutile Ltd (CMRL), including payments for consultancy work that investigators say left no visible deliverables.
The Serious Fraud Investigation Office (SFIO) submitted a report last year in Ernakulam court that forms part of an Enforcement Directorate money laundering investigation into Veena and CMRL. The SFIO found that Exalogic, incorporated in 2014–15 with minimal capital and a negative net worth by 2021–22, derived a large share of its revenue from CMRL contracts in 2017–18 and 2018–19.
According to the report, Exalogic received about Rs 2.78 crore from CMRL for IT consultancy. Veena was allegedly paid a separate monthly retainer of Rs 5 lakh while Exalogic drew Rs 3 lakh a month, creating a dual payment arrangement that positioned her as a major beneficiary. Investigators said they found no evidence that either Veena or Exalogic delivered the contracted services, citing statements from Exalogic staff, CMRL’s IT head and Veena herself. The SFIO contrasted this with ATNA Technologies, later hired for a similar IT study, which produced measurable outcomes at a lower cost.
The SFIO also alleged collusion involving then CMRL managing director Sasidharan Kartha and a non banking finance company linked to him, Empower India Capital Investments Pvt Ltd (EICPL). The report says EICPL extended two loans of Rs 25 lakh each to Exalogic in 2015–16; payments from CMRL were later routed to service these liabilities, effectively shifting a Rs 50 lakh burden from the private lender to CMRL.
Investigators pointed to email exchanges focused on invoicing and payment releases rather than project deliverables, and alleged wider financial irregularities at CMRL. The SFIO says the company recorded Rs 139 crore as fictitious cash expenses for sludge handling and transportation and Rs 43 crore through alleged over invoicing by unidentified vendors — a total alleged misappropriation of Rs 182 crore over 15 years. The probe drew on loose sheets recovered by the Income Tax Department in 2019 that the SFIO says document cash disbursements in the names of the MD and relatives, unconnected to CMRL operations.
Veena has denied the allegations in a court affidavit, saying her transactions with CMRL were lawful and transparent. The Enforcement Directorate has carried out searches linked to the probe, and ED director Rahul Naveen recently visited Kerala to review its progress. CPI(M) leaders have called the ED action politically motivated.