Thiruvananthapuram: The Enforcement Directorate on Wednesday conducted searches at 10 premises linked to former Kerala Chief Minister Pinarayi Vijayan as part of an ongoing money laundering investigation related to alleged financial irregularities involving a private firm connected to his daughter.
Officials carried out simultaneous raids at multiple locations across Kerala in connection with the probe into alleged diversion of funds from Cochin Minerals and Rutile Limited (CMRL).
ED links searches to CMRL money laundering probe
According to officials, the searches are linked to allegations that funds from CMRL were diverted to several individuals under the guise of expenses that were allegedly not genuine.
The ED stated that the investigation also covers Veena Vijayan, whose company Exalogic Solutions Private Limited is under scrutiny.
In its statement, the agency alleged that Exalogic Solutions was among the beneficiaries of the questioned transactions.
SFIO chargesheet intensified scrutiny
The case gained momentum after the Serious Fraud Investigation Office filed a chargesheet against Veena Vijayan in April last year.
According to the allegations, Exalogic Solutions received payments from CMRL between 2018-19 and the following three years despite allegedly not providing any services in return.
Investigators claimed that Exalogic had signed an agreement with CMRL in 2017 to provide software and marketing-related services.
However, authorities later questioned the legitimacy of the transactions during subsequent investigations.
Probe began after Income Tax searches
The matter first came under official scrutiny after the Income Tax Department conducted searches at CMRL premises in 2019.
Following the searches, the department reportedly submitted findings that later contributed to broader investigations into alleged financial irregularities.
In January 2024, the Centre ordered an SFIO investigation involving Exalogic Solutions, CMRL and the Kerala State Industrial Development Corporation (KSIDC), which held a stake in CMRL.
Money laundering case registered in 2024
Subsequently, the ED registered a money laundering case in March 2024 based on the findings and allegations connected to the SFIO probe.
Officials have not yet disclosed details regarding materials seized during Wednesday’s searches or whether any summons were issued.
The raids have triggered significant political attention in Kerala, given Pinarayi Vijayan’s senior position within the Communist Party of India (Marxist) and the sensitive nature of the allegations involving his family.
Political reactions expected
The latest ED action is likely to intensify political confrontation in Kerala, where opposition parties have repeatedly targeted the Left leadership over the allegations linked to Exalogic and CMRL.
The CPI(M) has earlier denied wrongdoing in connection with the matter and accused central agencies of politically motivated actions.
Further details regarding the investigation and possible next steps from the ED are awaited.