Reports suggest that, on May 30, the Enforcement Directorate (ED) tightened its investigation against Veena Vijayan, daughter of CPM leader and former Chief Minister Pinarayi Vijayan, in connection with money laundering cases. The next step is reportedly the examination of bank lockers linked to the bank accounts that the ED froze earlier this week. There are also reports that the ED may proceed with the confiscation of Veena’s assets.
During the last few days, the ED has collected crucial information regarding Veena’s bank accounts, fixed deposits, and other financial holdings. Accordingly, the ED may issue her a summons for further interrogation. This may be followed by the confiscation of her assets.
The Serious Fraud Investigation Office (SFIO) has found that the major source of income for Veena Vijayan and her company, Exalogic Solutions, was Cochin Minerals and Rutile Limited (CMRL), allegedly without the rendering of any service. CMRL is reported to have paid Rs 2.07 crore to Veena between the financial years 2016–17 and 2020–21. During the financial years 2017–18 and 2018–19, CMRL reportedly paid Rs 71 lakh to Exalogic.
Reports state that the transactions and contracts between CMRL and Exalogic were not known even to the Board of Directors of CMRL.
Ninety-three email messages were reportedly exchanged between Veena and CMRL between March 2017 and June 2020. However, all of them were invoices relating to money transactions. None of these emails reportedly explained what services were rendered by Exalogic in its capacity as an IT consultant.
The Income Tax Department examined CMRL’s accounts in January 2019. Following this, CMRL reportedly stopped accepting Exalogic invoices.
However, the company allegedly continued paying Veena on the basis of earlier invoices until April 2020. Investigating agencies point out that when this major source of income ceased, Exalogic incurred heavy losses during the 2021–22 financial year.
Meanwhile, the ED has reportedly indicated that there will not be any immediate inquiries into political leaders whose names appear on the list of recipients of money from CMRL. Both the Income Tax Department and the Serious Fraud Investigation Office (SFIO) have reportedly found irregularities and anomalies in Exalogic’s transactions.
The ED is now investigating the destination of the allegedly diverted funds. It is expected to move to the next phase only after completing this stage of the investigation.
The developments suggest that members of the CPM’s “First Family” may face increasing scrutiny. Political observers believe that the investigation could place significant pressure on Pinarayi Vijayan.
Meanwhile, BJP Vice-President Shone George has written to the ED, urging it to examine Veena’s overseas bank accounts, particularly in the United States.
He has argued that there is a possibility of CMRL-style payments having been received from other companies as well. It may be recalled that Pinarayi Vijayan and members of his family have travelled to the United States on several occasions, citing medical treatment.
