In a significant setback to Cochin Minerals And Rutile Ltd (CMRL) and former Kerala chief minister Pinarayi Vijayan, the Kerala High Court on Tuesday dismissed a writ petition filed by the company and its top executives seeking to quash the Enforcement Directorate's money laundering investigation. According to The Week, Justice T.R. Ravi dismissed a batch of petitions filed by the company and four of its senior officials challenging the ED's probe and the Enforcement Case Information Report (ECIR) registered by the central agency. The court held that the writ petition challenging the ECIR registered by the ED and summons issued under Section 50 of the PMLA was premature. The court observed that the mere issuance of a summons does not create a cause of action for invoking writ jurisdiction, ruling that the immunity granted to CMRL by the Income Tax Settlement Commission does not extend to proceedings under the PMLA as the two statutes operate independently. The court clarified that the ED can initiate inquiries and issue summons even in the absence of a formal FIR for a scheduled offence, noting that the existence of an FIR is not a precondition for issuing summons under Section 50 of the PMLA.
The Enforcement Directorate conducted early morning raids at 10 premises across Kerala, including the residence of former Kerala chief minister Pinarayi Vijayan and 12 other locations as part of its investigation into the CMRL money laundering case on Wednesday. According to latest reports from PTI, a total of 10 premises in the state are being raided under the provisions of the Prevention of Money Laundering Act (PMLA). The action comes after the ED registered a money laundering case against Exalogic Solutions, a company owned by Vijayan's daughter T Veena. As per Business Standard, PTI, and ET, the searches specifically include Vijayan's rental house in the state capital as part of the ongoing probe into alleged financial irregularities. The latest reports indicate that searches are also underway at locations connected to former minister Muhammad Riyaz, the CMRL office and several other premises. Veena Vijayan, whose IT firm Exalogic Solutions is at the centre of the controversy, has already been questioned by the Enforcement Directorate in connection with the case.
The controversy has acquired massive political significance after allegations surfaced that CMRL had made questionable payments to Exalogic Solutions Pvt. Ltd., the IT firm owned by Veena Thaikkandiyil, daughter of Pinarayi Vijayan. As reported by The Week, the allegations regarding monthly payments made by CMRL to Exalogic without corresponding services had triggered a fierce political storm in Kerala, with the Opposition repeatedly targeting Vijayan and accusing his family of benefiting from dubious financial dealings. The issue has remained one of the most politically sensitive controversies faced by the Vijayan government. CMRL and its officials had approached the High Court seeking to quash the ED proceedings, arguing that the agency lacked jurisdiction as no scheduled offence under the Prevention of Money Laundering Act (PMLA) was made out in the case. However, the court's dismissal of these petitions has effectively cleared the path for the ED's continued investigation.
The investigation centers on allegations that a private company named Cochin Minerals And Rutile Ltd (CMRL) made an illegal payment of ₹1.72 crore to Vijayan's daughter T Veena's company -- Exalogic Solutions during the period of 2018 to 2019. As reported by The Week, the Income Tax Interim Settlement Board had reportedly observed that the payments were made on a monthly basis despite no services allegedly being provided by the firm. The Interim Board for Settlement (Income Tax) accepted the findings of the Income Tax Department regarding the inflation of expenses by CMRL, the generation of cash for illegal payments, and the fictitious payment of ₹1.72 crore to Veena Vijayan and her company, M/s Exalogic Solutions Pvt. Ltd. The board also noted that Exalogic Solutions failed to provide a satisfactory explanation regarding the transactions, suggesting systematic irregularities in the financial dealings. The Serious Fraud Investigation Office (SFIO) filed a complaint alleging fraud under Section 447 of the Companies Act — an offence scheduled under the PMLA on April 3, 2025, which the court considered as further strengthening the ED's case.
The ED's probe stems from findings of a 2019 Income Tax raid on CMRL, which allegedly revealed that the company had inflated expenditures by over ₹133.82 crore between 2012–13 and 2018–19 by booking bogus expenses under transportation and sludge-handling heads. According to The Week, the cash generated was reportedly used for illegal payments to politicians, political parties, media houses, and public servants. The Settlement Commission also disallowed 30 per cent of the expenses claimed by CMRL as ‚Äúeligible expenses‚ÄĚ. The ED had filed a PMLA case to probe the allegations in 2024, with the investigation continuing under the latest raids conducted on Wednesday.
