New Delhi: The Enforcement Directorate on Wednesday carried out searches at multiple locations in Kerala, including the rented residence of former Kerala Chief Minister Pinarayi Vijayan, in connection with a money laundering probe linked to his daughter Veena Vijayan’s company, Exalogic Solutions Private Limited. The action is related to alleged financial transactions between Exalogic and Cochin Minerals and Rutile Limited.
According to the report, ED teams conducted raids at around 10 premises across the state under provisions of the Prevention of Money Laundering Act. The agency’s action comes in a case where Exalogic Solutions is accused of receiving payments from CMRL without allegedly providing any service in return.
The matter dates back to a 2017 agreement under which Exalogic had reportedly entered into a contract with CMRL for software and marketing services. However, the allegation is that between 2018 and 2019, CMRL made payments worth Rs 1.72 crore to Veena Vijayan’s firm, even though no services were allegedly delivered.
The controversy had first come under scrutiny after the Income Tax Department conducted searches at CMRL premises in 2019 and later submitted its report. In January 2024, the Centre ordered an investigation by the Serious Fraud Investigation Office into alleged financial irregularities. The report also noted that Kerala State Industrial Development Corporation held a 13.4 per cent stake in CMRL.
Last April, the SFIO filed a chargesheet against Veena Vijayan. The ED later registered a money laundering case in March 2024 to examine the alleged transactions.
The latest searches came shortly after the Kerala High Court dismissed a petition filed by CMRL seeking cancellation of ED proceedings in the case. This cleared the way for the agency to continue its investigation into the alleged money laundering angle.
The case has political significance because it involves the family of a senior Left leader and former chief minister. However, the allegations remain part of an ongoing investigation, and any final legal conclusion will depend on evidence placed before the competent court.
For now, the ED’s searches mark a major development in a case that has already drawn attention in Kerala’s political and legal circles. The investigation will now focus on the money trail, the nature of the agreement between Exalogic and CMRL, and whether the payments had any legitimate business basis.