Pinarayi Vijayan has questioned alleged contradictions in the ED’s CMRL-Exalogic case, asking how CMRL could have received undue benefits while the agency also claims the company suffered losses.
Thiruvananthapuram: Former Keralam Chief Minister and Leader of the Opposition in the Assembly, Pinarayi Vijayan, has strongly responded to the Enforcement Directorate’s (ED) latest action in the CMRL-Exalogic case, calling it an attempt to revive old allegations in a new form.
Vijayan alleged that a common political objective is emerging between the BJP-led government at the Centre and the Congress-led UDF government in the state to target him and the CPI(M). He said the ED’s action should not be viewed as a personal attack on him alone, but as an effort to weaken the CPI(M).
The ED has recently submitted a 25-page report to the Keralam Director General of Police, seeking registration of an FIR against Pinarayi Vijayan, his daughter Veena Vijayan, and his son-in-law and CPI(M) MLA P.A. Mohammed Riyas. The report was submitted under Section 66(2) of the Prevention of Money Laundering Act (PMLA).
The report and accompanying documents are currently being examined by the state police and the concerned government departments from a legal perspective.
Pinarayi Vijayan Questions ED’s Latest Move
Speaking to the media on Saturday, September 12, Vijayan said the ED’s latest move needs to be seen in the wider political context of the state.
He alleged that central investigative agencies are being used to exert pressure on political opponents. According to Vijayan, allegations against the CPI(M) have continued for nearly a decade, but the ED has now attempted to present the CMRL-Exalogic controversy through a new narrative.
He also questioned the consistency of the agency’s allegations, arguing that differences can be seen between its earlier claims and the accusations contained in the latest report.
Understanding the CMRL-Exalogic Controversy
The CMRL-Exalogic case revolves around financial transactions between Kochi-based mining company Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Pvt Ltd, a company owned by Veena Vijayan.
Exalogic had entered into an agreement with CMRL to provide IT and consultancy-related services.
According to the ED, CMRL paid approximately Rs 2.78 crore to Veena Vijayan and her company between 2016 and 2021. The agency alleges that the company did not actually provide services corresponding to these payments.
The investigating agency has claimed that the payments were recorded as consultancy fees but were allegedly used as a means of transferring bribe money.
In its latest report, the ED has made a further allegation involving Pinarayi Vijayan. According to the agency, he allegedly received Rs 3.28 crore in bribes from CMRL through his daughter Veena Vijayan.
These are allegations made by the investigating agency and remain subject to the ongoing legal process.
ED Seeks FIR Against Vijayan, Veena and Riyas
The ED has asked the state police to register an FIR against Pinarayi Vijayan, Veena Vijayan and Mohammed Riyas under the Prevention of Corruption Act.
Its report reportedly contains details of the alleged financial transactions as well as the agency’s findings regarding the movement of funds.
The ED has also examined the alleged role of Riyas in the case. According to the agency, he helped in receiving the alleged bribe money and transferring part of it to Dubai.
Veena Vijayan has also been accused by the agency of allegedly assisting in the collection and subsequent transfer of the money.
During its investigation, the ED identified Exalogic as a possible channel through which transactions that it considers non-genuine business payments were made.
The investigation has also referred to other individuals and entities, including CMRL Managing Director S.N. Sasidharan Kartha and former company finance officer P. Suresh Kumar.
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Dubai Transfers and Possible Hawala Trail Under ED Scanner
The investigation has expanded beyond the payments made by CMRL to Exalogic. The ED is also examining the alleged movement of funds after the initial transactions.
According to the agency, handwritten records recovered during searches contained details referring to transactions involving around Rs 20.05 crore in Indian currency and UAE dirhams worth Rs 3.49 lakh, which is approximately Rs 85 lakh.
The agency is investigating whether the money was subsequently moved to Dubai and whether the transactions formed part of a wider financial network.
The ED is also examining whether any portion of the alleged funds was connected with expenses involving Mohammed Riyas during the 2021 Assembly elections.
Possible violations of the Foreign Exchange Management Act (FEMA) are also part of the investigation.
Veena Vijayan has already appeared before the ED for questioning in connection with the case. The agency also examined her bank locker and seized electronic devices and other documentary material during searches.
Vijayan Points to Alleged Contradictions in ED Claims
Pinarayi Vijayan has challenged the basis of the ED’s latest allegations, arguing that the agency’s claims contain apparent contradictions.
He pointed out that the ED has allegedly claimed that CMRL suffered losses while simultaneously alleging that he, during his tenure as Chief Minister, provided undue benefits to the company.
Vijayan questioned how CMRL could have received undue government benefits if the company itself had suffered losses.
He also challenged the investigating agencies to produce a specific example showing that any decision taken by him as Chief Minister had illegally benefited CMRL.
Vijayan further argued that the financial dealings between CMRL and Exalogic were conducted through banking channels and that taxes were paid on the transactions.
He also referred to legal proceedings concerning some of the allegations against Exalogic in the Delhi High Court.
Vijayan Refers to Earlier Legal Proceedings
The former Chief Minister also referred to allegations raised by Congress MLA Mathew Kuzhalnadan in 2024.
Vijayan claimed that those allegations did not receive the legal backing required for further action against him. He further said that the Supreme Court had not accepted the allegations made against him in relation to the matter.
However, these statements represent Vijayan’s position and should not be interpreted as a final judicial finding on the allegations currently being examined by the ED.
The ED’s latest report and the ongoing investigation are part of a separate legal process.
What Happens After the ED Report?
The state government has indicated that it will follow the prescribed legal procedure before deciding whether an FIR should be registered.
Keralam Chief Minister V.D. Satheesan has said that the ED’s recommendation will be legally examined before any decision is taken. The state Home Department has also sought the opinion of the Advocate General.
The state police chief has received the ED’s 25-page report, which contains details of the alleged transactions, account-related information and the charges proposed by the agency.
The police and the government will now assess whether the material provided by the ED meets the legal requirements for registering an FIR.
Another important legal issue is that the ED report names two sitting MLAs. This could bring into question whether any sanction is required under the Prevention of Corruption Act before certain stages of the proceedings can move forward.
However, registration of an FIR, investigation of the allegations and obtaining sanction for prosecution are separate stages under the law.
The next course of action in the CMRL-Exalogic case will depend on the outcome of the state government’s legal review and the assessment by the police. Meanwhile, the ED’s latest report has brought the long-running controversy back into the centre of Keralam’s political debate.
