Pinarayi Vijayan's Daughter's Premises Raided In Alleged Corporate Fraud Case

The Directorate of Enforcement (ED), Kochi Zone, on Tuesday conducted searches at 10 locations linked to Cochin Minerals and Rutile Limited (CMRL), its directors and entities associated with Veena, daughter of former Kerala chief minister Pinarayi Vijayan, in connection with an alleged corporate fraud and money laundering case.

The searches were carried out across Kottayam, Ernakulam, Kannur, Thiruvananthapuram and Bengaluru at premises linked to CMRL Managing Director SN Sasidharan Kartha, Saran S. Kartha, Veena and her company, Exalogic Solutions Private Limited.

According to the probe agency, the case stems from an Income Tax Department search conducted in January 2019, during which alleged fake expenses amounting to nearly Rs 130 crore were detected. The agency said these expenses were later admitted before the Income Tax Settlement Commission (ITSC), which also recorded findings regarding alleged bribes paid by CMRL to various persons.

Based on the findings, the Serious Fraud Investigation Office (SFIO) initiated a probe into the company. The ED subsequently launched a money laundering investigation under the Prevention of Money Laundering Act (PMLA).

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The agency said the SFIO filed a prosecution complaint on April 3, 2025, before an Ernakulam court against Shri Sasidharan Kartha and 12 others, alleging corporate fraud. As per the complaint, fictitious cash expenses totalling around Rs 182 crore were allegedly created over a period of 15 years and used to make bribery payments. The SFIO also alleged that Rs 91 crore was paid towards transport services to firms owned by the Kartha family.

The ED alleged that one of the "fake expenses" booked by CMRL involved payments made to Exalogic Solutions Pvt Ltd, owned by Veena, allegedly for IT consultancy services. According to the agency, the company received Rs 2.78 crore despite "no services being rendered." The ED also alleged that a company linked to Sasidharan Kartha extended loans worth Rs 50 lakh to Exalogic despite delayed repayments.

The agency said the Kerala High Court on May 26, 2026, dismissed a petition filed by CMRL challenging the ED probe. The court reportedly held that initiation of a PMLA investigation was valid and that a predicate offence existed following the SFIO prosecution complaint.

During the searches, ED officials recovered several documents, digital records and financial details. The agency said it has frozen around Rs 18.36 crore across 242 bank accounts identified during the operation.

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The ED also claimed that one of its search teams was attacked by a group of people after the search at the Thiruvananthapuram residence, where Veena and Vijayan were present. According to the agency, vehicles carrying ED and CRPF personnel were allegedly attacked with bricks and iron rods, injuring one driver. An FIR has been lodged with the Thiruvananthapuram Police.

The agency said further investigation is underway to identify other alleged recipients of bribe payments and trace proceeds of crime.