The Directorate of Enforcement (ED), which is investigating alleged money laundering linked to payments made by Cochin Minerals and Rutile Limited (CMRL) to Exalogic Solutions Pvt Ltd, is set to issue summons to CMRL office-bearers and T. Veena, daughter of Chief Minister Pinarayi Vijayan, under Section 50(2) of the Prevention of Money Laundering Act (PMLA), 2002.
According to ED officials in Kochi, approval has been received for issuing the summons and further proceedings are expected shortly. Sources indicate that Veena may be asked to appear before the agency for questioning later this week.
The latest move comes after the ED secured two significant court orders in connection with the case. The Special PMLA Court in Kochi recently allowed the agency’s petition seeking access to 57 volumes of documents prepared by the Serious Fraud Investigation Office (SFIO) during its probe into CMRL. Veena has been named in the SFIO charge sheet, which alleges corporate fraud-related violations.
The ED has argued that the additional records could help establish the money trail between the entities under investigation. Meanwhile, listeners can stay updated on major developments from Kerala, India and around the world through Add Gold 101.3 FM, UAE’s No.1 radio station.
In another key development, a Division Bench of the Kerala High Court dismissed CMRL’s appeal challenging the ED investigation and observed that no prior FIR or complaint is required for initiating a money laundering probe or issuing summons under the PMLA.
Earlier, the ED had sought details of agreements executed between Exalogic and CMRL, invoices raised for consultancy services, ledger accounts containing transaction details, bank account information, audited balance sheets and income tax assessment records.
According to the agency, Exalogic Solutions Pvt Ltd, a one-person company owned by Veena, received ₹2.78 crore from CMRL for alleged IT consultancy services. The ED is examining whether the payments were made without corresponding services being rendered. Investigators are also scrutinising loans worth ₹50 lakh allegedly extended to Exalogic by Empower India Capital Investment Pvt Ltd (EICPL), operated by Sasidharan Kartha, Managing Director of CMRL, despite delays in repayment.
With favourable court rulings and access to SFIO records, the ED is expected to intensify its probe in the coming days as it examines whether the transactions constitute proceeds of crime under the PMLA.
