ED alleges CMRL payments to Veena linked to ties with former Kerala CM Pinarayi Vijayan

A statement reportedly given by former Cochin Minerals and Rutile Ltd. (CMRL) Managing Director SN Sasidharan Kartha to the Enforcement Directorate (ED) has delivered a significant blow to former Kerala Chief Minister Pinarayi Vijayan and his daughter, Veena Vijayan.

Kartha reportedly told the ED that the payments made to Veena Vijayan and her firm were based entirely on his personal relationship with Pinarayi Vijayan. He further stated that neither Veena nor her IT company, Exalogic Solutions, rendered any actual services to Cochin Minerals and Rutile Ltd. (CMRL).

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The revelation surfaced in an ED investigation report submitted to a court in connection with a money laundering probe seeking the attachment of properties belonging to the accused.

The ED report states that CMRL founder and former Managing Director SN Sasidharan Kartha admitted to making payments to Veena Vijayan and Exalogic Solutions without receiving any services in return. During questioning, Kartha reportedly said that the payments were driven solely by Veena’s personal connection with the then Chief Minister, Pinarayi Vijayan.

“He admitted that payments were made to Veena and Exalogic despite no services being rendered, citing her personal relationship with the then Kerala Chief Minister Pinarayi Vijayan,” the report said.

According to the statement, recorded from Sasidharan Kartha under Section 50 of the Prevention of Money Laundering Act (PMLA) and reportedly submitted by the ED before the PMLA Adjudicating Authority, payments amounting to Rs 2.78 crore were made to Veena Vijayan and Exalogic Solutions between 2017 and 2020.

“Veena could not provide any evidence of tangible work carried out for CMRL in return for the Rs 2.78 crore received in the name of IT consultancy services,” the report said.

The ED highlighted that Exalogic Solutions operated with a weak financial base, maintaining a negative net worth of Rs 66 lakh and a standalone turnover of only Rs 5 lakh. According to the report, the company relied almost entirely on funding from CMRL.

In addition to the monthly retainers, a non-banking financial company owned by Kartha, Empower India Capital Investments Private Limited (EICPL), allegedly extended loans worth Rs 50 lakh to Exalogic.

The ED further pointed out that Exalogic, which had been incurring losses during 2014-15, entered into an agreement with CMRL only after the first Pinarayi Vijayan government assumed office in 2016.

The report further alleged that Sasidharan Kartha exercised absolute control over CMRL and orchestrated a layered scheme to misappropriate Rs 182 crore over a period of 15 years. According to the ED, the scheme involved fictitious cash expenses amounting to Rs 139 crore booked under “Sludge Handling and Transportation Expenses” using self-generated vouchers without supporting invoices or evidence of services rendered.

The report also alleged that another Rs 43 crore was siphoned off through inflated invoices raised by known vendors, who allegedly withdrew the excess amount in cash and returned it to CMRL officials after deducting their commission.

“This is nothing but circular payments made from CMRL bank accounts and taken back from vendors in cash by Kartha and others,” the report said.