ED raids in Kerala pay-off case linked to Vijayan daughter
The Enforcement Directorate conducted eight raids in Kozhikode, Kerala, as part of an investigation into alleged financial transactions between Exalogic Solutions and CMRL, connected to Pinarayi Vijayan’s daughter. The probe follows earlier searches in May 2026 and references prior SFIO and PMLA pro
Key takeaways
- Eight ED raids were conducted in Kozhikode, Kerala, as part of the investigation into Exalogic Solutions and CMRL.
- The probe involves T. Veena, daughter of former Chief Minister Pinarayi Vijayan, and potential financial irregularities including payments to Veena’s firm.
- The Kerala High Court had previously upheld the validity of PMLA investigations despite debates over predicate offences, while SFIO has filed a prosecution complaint for corporate fraud.
What Happened
The Enforcement Directorate (ED) carried out eight search operations at locations in Kozhikode, Keralam, tied to the investigation of alleged financial transactions between Exalogic Solutions, a defunct firm owned by T. Veena, and Cochin Minerals and Rutile Limited (CMRL). The case is described as a pay-off related inquiry. The current raids build on earlier ED activity following searches conducted on May 27, 2026 at premises associated with Pinarayi Vijayan (then living in a rented house at Bakery Junction, Thiruvananthapuram), Vijayan’s ancestral home in Kannur, and the residence of P.A. Mohammed Riyas, a former Public Works Minister and Veena’s husband. In that prior round, the ED froze ₹18.36 crore across 242 accounts identified during the operations.
In parallel, the Kerala High Court dismissed a writ petition filed by CMRL on May 26, 2026, holding that investigations under the Prevention of Money Laundering Act (PMLA) remain valid even without a predicate offence. The court noted that, as of the date of judgment, a predicate offence existed since the Serious Fraud Investigation Office (SFIO) had filed its prosecution complaint under PMLA for corporate fraud against Sasidharan Kartha (CMRL’s chairman and managing director) and 12 others. The SFIO’s case includes allegations of inflated remuneration paid to Kartha and family members and a series of purported fictitious cash expenses disclosed over 15 years, along with payments to Veena’s firm and related entities.
According to the SFIO, Kartha and his son accumulated remuneration totaling ₹30.63 crore between 2015-16 and 2022-23 despite no dividend payments. It is also alleged that ₹182 crore in fictitious cash expenses were recorded over 15 years, and CMRL paid ₹91 crore to transport services linked to companies owned by Kartha’s family. One specific item cited was ₹2.78 crore paid to Veena’s one-person firm under the guise of IT consultancy services. Additionally, Exalogic is said to have received loans totaling ₹50 lakh from Empower India Capital Investment Private Limited (EICPL), operated by Kartha, despite alleged delays in repayments.
Why It Matters
The ED’s ongoing raids and the court’s stance on PMLA investigations underscore the persistence of inquiries into potential money laundering and corporate fraud involving figures connected to political prominence in Kerala. The case links multiple actors and entities across several years, and the allegations touch on compensation practices, opaque expenses, and intercompany transactions that authorities say warrant scrutiny under anti-money-laundering laws. The developments reflect broader efforts to pursue financial improprieties tied to political and business networks within the state.
Background
Historically, authorities have pursued multiple strands of inquiry into CMRL and related entities, including findings from the Income Tax Department that prompted further investigation by the SFIO under the Union Ministry of Corporate Affairs. The SFIO filed a prosecution complaint alleging corporate fraud under PMLA, naming Sasidharan Kartha as chairman and managing director and 12 others. The May 2026 searches expanded the ED’s engagement with the case, complementing earlier actions and the High Court’s ruling on the validity of PMLA investigations in the absence of a predicate offence at that time.
Key Facts
- Eight ED raids took place in Kozhikode, Keralam, as part of the probe into Exalogic Solutions and CMRL.
- Exalogic Solutions is described as a defunct firm owned by T. Veena, daughter of former Chief Minister Pinarayi Vijayan.
- Previous ED searches on May 27, 2026 targeted Vijayan’s rented house in Thiruvananthapuram, his ancestral home in Kannur, and the residence of P.A. Mohammed Riyas.
- ₹18.36 crore was frozen across 242 accounts identified during those May searches.
- The Kerala High Court dismissed a writ petition by CMRL on May 26, 2026, ruling that PMLA investigations remain valid despite the absence of a predicate offence at that time.
- The SFIO filed a prosecution complaint under PMLA for corporate fraud involving Sasidharan Kartha and 12 others.
- SFIO alleges Kartha and his son received ₹30.63 crore in remuneration (2015-16 to 2022-23) with no dividend payments.
- Alleged fictitious cash expenses amounting to ₹182 crore over 15 years were disclosed by SFIO.
- CMRL paid ₹91 crore to transport services connected to Kartha family-owned companies.
- Veena’s one-person firm reportedly received ₹2.78 crore from CMRL as IT consultancy services.
- Empower India Capital Investment Private Limited allegedly extended ₹50 lakh in loans to Exalogic, despite repayment issues.
What Happens Next
The ED has not announced additional steps beyond the eight raids, but the ongoing PMLA-based inquiry and SFIO’s prosecution filings indicate continued investigation into the linked transactions and related parties. Further developments would likely follow through court filings, potential summons, or additional search operations contingent on evidence uncovered during these raids.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
Related stories
Halal Fayidah Co-operative Society denies investment scam allegations
Kerala SC/ST panel disposes 208 cases in six hearings
Power play in Pala ahead of chairperson election
