Kochi/New Delhi: The Enforcement Directorate on May 27 launched search operations at 12 locations connected to former Chief Minister Pinarayi Vijayan’s family members, including his daughter Veena Vijayan and son-in-law Mohammed Riaz, along with senior executives associated with Cochin Minerals and Rutile Limited (CMRL).
The searches were conducted as part of the ED’s money laundering investigation into alleged illegal financial transactions involving Veena Vijayan’s company, Exalogic Solutions.
The raids came immediately after a significant ruling by the Kerala High Court on May 26, which dismissed CMRL’s petition seeking to stop the ED investigation. The ruling effectively cleared the way for the agency to continue its probe under the Prevention of Money Laundering Act (PMLA).
Political observers describe the development as one of the biggest legal and political challenges faced by the Pinarayi Vijayan camp in recent years.
How the Controversy Began
The roots of the controversy go back to Income Tax Department raids conducted at CMRL in 2019. During the investigation, officials allegedly discovered financial transactions between CMRL and Exalogic Solutions, an IT company owned by Veena Vijayan.
According to findings later cited by investigating agencies, Exalogic allegedly received payments amounting to Rs 1.72 crore during 2017–18 and 2018–19 for software development, consultancy and management services.
However, the Income Tax Department reportedly concluded that no actual services had been rendered by Exalogic despite the payments being made regularly.
The payments were subsequently described by investigators as “masappadi” or monthly payments, a term that later became politically explosive in Keralam.
An Interim Board of Settlement later reportedly termed the transactions as “illegal payments,” intensifying scrutiny over the matter.
Expanding Investigation and Political Fallout
The controversy deepened after investigators alleged that CMRL Managing Director Sasidharan Kartha had made payments to multiple political figures, media entities, police officials and trade union leaders to ensure “smooth conduct of business.”
The Serious Fraud Investigation Office (SFIO), functioning under the Ministry of Corporate Affairs, later initiated a parallel investigation into Exalogic and its transactions with CMRL.
According to reports, SFIO investigators found references to abbreviated names in seized documents, allegedly linked to political beneficiaries. One such abbreviation, “PV,” triggered massive political controversy after BJP and UDF leaders claimed it referred to Pinarayi Vijayan.
However, no investigating agency has officially confirmed such claims in court proceedings so far.
The SFIO probe reportedly estimated the total financial benefit linked to Exalogic at approximately Rs 2.73 crore.
The ED subsequently entered the picture to examine whether the transactions qualified as proceeds of crime under money laundering laws.
Veena Vijayan and CPM Reject Allegations
Veena Vijayan and Exalogic Solutions have consistently denied wrongdoing.
Their position has remained that the payments were legitimate business transactions connected to consultancy and IT-related services provided to CMRL.
The CPM has also strongly defended the former Chief Minister’s family and accused central agencies of carrying out politically motivated investigations.
The party repeatedly described the probe as part of a larger campaign of “political vendetta” by the BJP-led Union government against opposition leaders.
Following earlier investigations, CPM and Left Democratic Front workers had organised protests across Keralam, alleging misuse of central agencies for political targeting.
Party leaders have also repeatedly pointed out that neither Pinarayi Vijayan nor Veena Vijayan has been convicted by any court.
High Court Verdict Changes the Situation
The Kerala High Court’s decision to dismiss CMRL’s plea against ED proceedings is widely being viewed as a turning point in the case.
Legal experts say the ruling has strengthened the ED’s position and allowed investigators to proceed more aggressively with evidence collection, financial analysis and custodial questioning if required in the future.
The searches conducted on May 27 indicate that the agency is now intensifying efforts to establish money trails, identify possible beneficiaries and examine whether illegal financial transactions were systematically disguised as legitimate consultancy payments.
The developments are expected to trigger fresh political confrontation in Keralam.
The BJP and the Congress-led UDF are likely to sharpen their attacks on the CPM over allegations of corruption and misuse of political influence.
Meanwhile, the CPM is expected to continue framing the investigation as politically motivated.
Observers believe the ED raids may only be the beginning of a much larger legal and political battle surrounding the CMRL–Exalogic case.
