CMRL-Exalogic fraud case: ED finds fresh evidence of hawala transactions linked to T. Veena; digital devices seized
The ED’s PMLA investigation was initiated based on findings from the Serious Fraud Investigation Office, which investigated alleged corporate fraud and bribe payments by CMRL
The Directorate of Enforcement (ED) has claimed that it found evidence of money transfers through hawala channels allegedly linked to T. Veena, daughter of former Kerala Chief Minister Pinarayi Vijayan. On August 18, the ED’s Kochi Zone conducted searches at nine premises in Kozhikode under the
The Directorate of Enforcement (ED) has claimed that it found evidence of money transfers through hawala channels allegedly linked to T. Veena, daughter of former Kerala Chief Minister Pinarayi Vijayan. On August 18, the ED’s Kochi Zone conducted searches at nine premises in Kozhikode under the
The Directorate of Enforcement (ED) has claimed that it found evidence of money transfers through hawala channels allegedly linked to T. Veena, daughter of former Kerala Chief Minister Pinarayi Vijayan. On August 18, the ED’s Kochi Zone conducted searches at nine premises in Kozhikode under the
The Directorate of Enforcement (ED) has claimed that it found evidence of money transfers through hawala channels allegedly linked to T. Veena, daughter of former Kerala Chief Minister Pinarayi Vijayan.
On August 18, the ED’s Kochi Zone conducted searches at nine premises in Kozhikode under the Prevention of Money Laundering Act (PMLA), 2002, as part of its investigation into alleged corporate fraud and bribe payments involving Cochin Minerals and Rutile Limited (CMRL).
According to the ED, its investigation found that CMRL’s management, led by S.N. Sasidharan Kartha, generated proceeds of crime and allegedly paid bribes to various persons. The agency has alleged that Veena was among the recipients of money from CMRL without rendering any services.
The ED’s PMLA investigation was initiated based on findings from the Serious Fraud Investigation Office (SFIO), which investigated alleged corporate fraud and bribe payments by CMRL. The SFIO filed a prosecution complaint on April 3, 2025, in connection with the alleged corporate fraud.
According to the SFIO investigation, CMRL allegedly booked fictitious cash expenses totalling ₹182 crore over a period of 15 years, which were allegedly used to pay bribes to various persons.
One of the alleged fictitious expenses involved payments to Veena. Her company, Exalogic Solutions Private Limited, a one-person company, received a total of ₹2.78 crore from the CMRL, allegedly under the guise of IT consultancy services, according to the ED.
The agency further alleges that Empower India Capital Investment Private Limited (EICPL), operated by CMRL managing director S.N. Sasidharan Kartha, extended loans totalling ₹50 lakh to Exalogic, despite the company failing to make timely repayments.
Search series
The ED had earlier conducted searches at the premises of Veena and CMRL promoters on May 27, 2026. During those searches, the agency seized handwritten accounts allegedly maintained by Veena.
The notes contained names of individuals, amounts handled or spent, and details of money transferred to Dubai. They recorded transactions in both UAE dirhams (AED) and Indian rupees.
According to the ED, the notes showed transfers of about AED 349,000 to Dubai, equivalent to approximately Rs. 85 lakh. The handwritten accounts also recorded transactions totalling about ₹20.05 crore. The agency said these records were seized during the search.
The ED also said digital devices seized from Veena contained a photograph of a SIM card issued in another person’s name for use in a Wi-Fi router. The agency suspects that the SIM card and router were obtained in another person’s name to facilitate communication through internet-based calls. All persons named in the handwritten accounts—as well as the person who allegedly provided the SIM card—were covered in the latest searches.
The August 18 searches of ED targeted people in the wider circle of Veena’s husband and senior CPI(M) leader Muhammad Riyas. ED searched P. Nikhil, a member of the Kozhikode district secretariat; Nandulal, a DYFI office-bearer and destination tourism manager; P.P. Shaijal, owner of K.C.K. Dentals and a former classmate of Riyas; IT entrepreneur Febish Mohammed, another former classmate; Varish Kalathingal, managing director of Capital Marbles and Granites; and an NRI named Faijas.
During the August 18 searches, the ED seized several digital devices and recorded statements. The agency claimed that it found evidence relating to money transfers through hawala channels during these searches.
The agency also claimed that the seizures indicated that Veena was handling amounts beyond her known sources of income. According to the agency, the amounts recorded in the handwritten accounts were over and above the payments she received from CMRL. The agency said it would initiate further legal action in accordance with the law.
Earlier today, CPI(M) state secretary M.V. Govindan responded by accusing the ED of a targeted attack on the party, arguing that people were being raided merely because they were acquainted with Riyas. Riyas, too, said he and the party would fight the matter “politically and legally”.