The Enforcement Directorate (ED) on Wednesday conducted searches at 10 locations linked to former Kerala Chief Minister Pinarayi Vijayan, his family members, and executives of Cochin Minerals and Rutile Limited in connection with the alleged CMRL-Exalogic payments case.
The searches were carried out in Thiruvananthapuram, Kochi, Kozhikode, Kannur, and Bengaluru. Premises linked to Vijayan, his daughter Veena T’s IT firm Exalogic Solutions, and senior CMRL executives were covered during the operation, The Indian Express reported.
The action came a day after the Kerala High Court refused to quash ED proceedings in the matter.
What is the CMRL-Exalogic case?
The case originated after Income Tax raids on CMRL in 2019. Investigators later alleged that the Kochi-based minerals company paid around Rs. 1.72 crore to Exalogic Solutions between 2017-18 and 2018-19 for software, consultancy, and management services.
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According to the Income Tax department, no such services were actually provided despite the payments being made. The department’s Interim Board of Settlement later described the transaction as an “illegal payment,” as reported by The Indian Express.
The Serious Fraud Investigation Office (SFIO) later widened the probe and estimated the alleged financial benefit to Exalogic at around Rs. 2.73 crore.
CPI(M) calls move ‘politically motivated’
Veena T and Exalogic Solutions have denied any wrongdoing and said the payments were part of legitimate business arrangements. The CPI(M) has repeatedly alleged that the central agency investigations are politically motivated.
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No court has convicted Pinarayi Vijayan, Veena T, Exalogic, or CMRL in the case so far. Following Wednesday’s searches, CPI(M) and Left parties organised protests across Kerala against the ED action.
The ED is currently probing whether the transactions involved proceeds of crime under the Prevention of Money Laundering Act (PMLA).
