In a major development in the Exalogic–Cochin Minerals and Rutile Limited (CMRL) money laundering case, a special court in Kochi on Monday allowed the Enforcement Directorate (ED) access to 134 crucial documents originally collected by the Serious Fraud Investigation Office (SFIO).
Special Judge Suresh Babu V.P.M. of the Prevention of Money Laundering Act (PMLA) Court allowed a petition filed by the ED seeking copies of documents gathered during the SFIO’s investigation into alleged fictitious expenses admitted by CMRL before the Income Tax Settlement Commission.
The order is being viewed as a significant legal setback for Veena Vijayan, owner of Exalogic Solutions and daughter of former Kerala Chief Minister Pinarayi Vijayan, as well as for CMRL, as it provides the ED with critical financial evidence to advance its investigation.
The court directed that documents forming part of the SFIO charge sheet be made available to the ED. With this order, the agency will gain access to 134 documents contained in approximately 54 volumes. These include sensitive records such as agreements between Exalogic Solutions and CMRL, bank statements of Exalogic and other entities, and Veena Vijayan’s income tax returns.
The ED, which is investigating alleged money laundering linked to CMRL and involving Veena Vijayan, had approached the PMLA Court in Kochi on Saturday seeking access to the documents collected by the SFIO during its probe. The petition came up for hearing on Monday.
CMRL opposed the plea, arguing that the documents should not be handed over to the ED without first hearing the company. The SFIO informed the court that it had no objection to sharing the records. After hearing submissions from the ED, SFIO, and CMRL, the court allowed the petition. The order is expected to push the investigation into its next phase.
According to the allegations, CMRL paid ₹2.78 crore to Exalogic Solutions, owned by Veena Vijayan, purportedly for IT consultancy services, although no services were allegedly rendered.
The ED has further alleged that another firm operated by CMRL Managing Director Sasidharan Kartha extended loans worth ₹50 lakh to Exalogic despite non-repayment, thereby generating illicit “proceeds of crime” that were allegedly used to influence various individuals.
In a related development, a Division Bench of the Kerala High Court on Friday dismissed an appeal filed by CMRL and its officials seeking to quash the ED case against them in connection with the alleged money laundering linked to Exalogic Solutions.
The High Court clarified that the ED does not require a registered criminal FIR or a predicate offence to undertake civil actions or initiate inquiries under the Prevention of Money Laundering Act.
With full access to these financial records, the ED is expected to accelerate its investigation and may issue fresh summonses to key individuals, including CMRL Managing Director Sasidharan Kartha and Veena Vijayan.