The Enforcement Directorate (ED), on Wednesday, initiated an investigation into the alleged dubious transactions between Kerala the firm of Chief Minister Pinarayi Vijayan’s daughter Exalogic Solutions, and Kochi-based mining company Cochin Minerals and Rutile Ltd (CMRL).
The Kochi unit of the ED registered an Enforcement Case Investigation Report (ECIR) – similar to a First Information Report (FIR) in criminal cases – against Veena Vijayan’s company under the Prevention of Money Laundering Act, 2002 and started a probe into the transactions.
The anti-money laundering agency conducted preliminary investigations into the matter before registering the ECIR.
The Central agency acted on the basis of a report by the Income Tax Interim Settlement Board (ITSIB) in August 2023 stating that Veena and her firm had received Rs 1.72 crore as monthly payments from the CMRL despite no evidence of any services given in return.
The ED probe will include the individuals and entities on the record of the ITSIB order. Besides Veena Vijayan, the role of CMRL and the Kerala State Industrial Development Corporation (KSIDC), which holds 13.4 per cent shares in CMRL, will also come under the ambit of probe.
The ITI SB report revealed that the CMRL had paid money to other political leaders and trade union leaders as well. The ED investigation is also likely to cover others who received money from the CMRL.
The probe by the ED coincides with an ongoing investigation by the Serious Fraud Investigation Office (SFIO).
The Karnataka High Court in February dismissed the petition filed by Exalogic Solutions, owned by Veena Vijayan questioning the action of the Ministry of Corporate Affairs (MCA) ordering a probe by the the SFIO into the affairs of the company.
The MCA had told the court that Illegal payments made to the extent of Rs 135 crore by the CMRL to various political functionaries and certain other entities, including Exalogic, had necessitated the probe.
Earlier this month, the SFIO issued notices to firms and establishments that were involved in financial transactions with the firm Exalogic Solutions, owned by Veena Vijayan.
The notices were issued under section 217(2) of the Companies Act, based on the inspections conducted on the bank accounts of Exalogic Solutions.
The SFIO asked these companies to produce all the documents related to the transactions made by them with the Exalogic Solutions at the SFIO office at Chennai by March 15. It is learnt around 12 companies have received notice from the SFIO in Kerala alone.
It asked these companies/institutions to produce copies of contracts, work orders, and invoices related to products or services provided by Exalogic Solutions.
The SFIO reportedly found that more than 10 firms had done substantial translations with Exalogic Solutions during 2016-17.
The ITISB earlier found that the Cochin-based Cochin Minerals and Rutile Ltd (CMRL) paid 1.72 crore to CM’s daughter Veena Vijayan’s firm EXalogic Solutions without providing any service to them.