Kerala HC Clears ED Probe; Pinarayi Vijayan, Veena Questioned in CMRL Money Laundering Case

The Enforcement Directorate's (ED) money laundering investigation into the CMRL–Exalogic payments case has entered a critical phase, placing former Kerala Chief Minister and Leader of the Opposition Pinarayi Vijayan and his daughter, Veena T, under intensified scrutiny. The development follows key statements reportedly made by CMRL Managing Director Sasidharan Kartha, which investigators say have significantly strengthened the case. According to sources familiar with the probe, the ED is now preparing to name Veena as an accused under the Prevention of Money Laundering Act (PMLA), while also planning to summon Vijayan for questioning regarding CMRL's payments to Exalogic Solutions, an IT firm owned by Veena.

The case gained momentum after Kartha reportedly told investigators that Exalogic was awarded the contract primarily due to his close association with Vijayan during his tenure as Chief Minister. Kartha is also said to have stated that neither Veena nor Exalogic delivered any services to CMRL despite receiving regular payments. This testimony, recorded during his questioning at his residence in April 2024, is considered pivotal by the ED, as it establishes a direct link suggesting the payments lacked any legitimate service basis — a cornerstone of the agency's money laundering allegations.

Building on these findings, the ED has moved forward with extensive attachment proceedings and filed a detailed report before the PMLA Adjudicating Authority. The agency has frozen deposits totaling roughly Rs 32 lakh linked to Veena, held both in her personal capacity and through associated companies, in addition to attaching her bank locker. Investigators noted that despite the relatively modest balances found — Rs 1.37 lakh in Veena's personal account and Rs 27,585 in Exalogic's account — the attachments were deemed necessary to preserve evidence connected to the alleged proceeds of crime.

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The ED has additionally frozen assets and financial investments worth approximately Rs 26 crore belonging to Kartha and his family members as part of the broader investigation. With Kartha's statement now central to the agency's case, officials believe they have sufficient legal grounding to formally name Veena as an accused and further examine whether the CMRL payments were tied to undue political influence. Once the Adjudicating Authority approves the attachment proceedings, the ED is expected to escalate the investigation, with fresh summons — including to Vijayan — anticipated in the coming days.

The Communist Party of India (Marxist) and Vijayan have consistently denied any wrongdoing in connection with the case. State BJP vice-president Shaun George, who is also a petitioner in the matter, said the developments made clear that a serious offense had occurred. Meanwhile, former minister and CPI-M legislator P.A. Mohammed Riyas, who is married to Veena, said he was unaware of the specifics of the ED's latest findings and declined to comment further. As the investigation progresses, both political observers and the public are closely watching the ED's next steps in the case.

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