The Enforcement Directorate (ED) on Wednesday claimed that handwritten records seized from Veena T, daughter of former Kerala chief minister Pinarayi Vijayan, contained details of financial transactions running into crores of rupees, including transfers to Dubai, as the agency widened its money laundering investigation involving Cochin Minerals and Rutile Ltd (CMRL) and her now-defunct company Exalogic Solutions. The federal agency said the documents were recovered during searches conducted on May 27 and allegedly contained names of individuals, amounts handled or spent and details of money transferred to Dubai.
According to the ED, the handwritten accounts recorded transactions of approximately Rs 20.05 crore in Indian currency. Separate entries concerning Dubai allegedly showed transfers amounting to around AED 3.49 lakh, equivalent to approximately Rs 85 lakh.
The allegations have been rejected politically by the CPI(M), while Vijayan has previously described the investigation involving his daughter as an act of political vendetta.
Fresh searches follow May raids
The ED said information recovered during the May operation led it to conduct another round of searches on August 18 in Kozhikode. The latest searches covered people whose names allegedly appeared in the handwritten records as well as an individual whom the agency claims had provided a SIM card used by Veena.
The ED alleged that material recovered during Tuesday's searches indicated that Veena had handled funds beyond her known sources of income. It further claimed that the transactions reflected in the handwritten records were separate from the payments she allegedly received from CMRL. The agency said it would take further legal action in accordance with law and claimed to have found evidence indicating that money was transferred through hawala channels. These assertions are part of the ED's ongoing investigation and have not been established by a court.
Rs 2.78 crore payments under scanner
The money laundering investigation centres on transactions between CMRL, a Kerala-based mineral processing company, and Exalogic Solutions, an information technology company promoted by Veena that has since ceased operations. The ED has alleged that CMRL paid around Rs 2.78 crore to Exalogic under the stated purpose of providing IT consultancy services. Investigators claim the payments were made without corresponding services being provided and have treated the transactions as part of the suspected proceeds of crime being examined under the Prevention of Money Laundering Act.
According to the ED, its earlier investigation indicated that alleged proceeds of crime were generated by the management of CMRL, led by S N Sasidharan Kartha, and that payments were made to several individuals.
The agency has alleged that Veena was among the recipients of money from CMRL despite not rendering services in return. Veena was searched in May while staying with her father at a rented residence in Thiruvananthapuram. She was subsequently questioned by the ED at its Kochi office.
SIM card also under investigation
The agency has also raised questions about a SIM card after examining digital devices seized from Veena. According to the ED, investigators found a photograph of a SIM card that had allegedly been obtained in another person's name and was meant for use with a Wi-Fi router.
The agency said it suspects the SIM and router were procured in another person's name to facilitate communication through Internet-based calls. The ED has not said that this allegation has been judicially established. The circumstances surrounding the procurement and use of the SIM card form part of the continuing investigation.
CPI(M) alleges political targeting
Veena's husband and CPI(M) leader P A Mohamed Riyas on Wednesday said he and his party would respond to the ED's actions both politically and legally. Riyas was responding to the August 18 searches at the homes and business premises of people described as being close to him.
CPI(M) state secretary M V Govindan also criticised the searches, alleging that the agency was now attempting to target Riyas through its investigation. The CPI(M) has consistently challenged the allegations surrounding the CMRL-Exalogic transactions and accused central investigative agencies of being used for political purposes. Vijayan has similarly maintained that the case against his daughter is intended to politically target him.
Probe widens beyond CMRL payments
The latest ED claims potentially broaden the scope of the investigation beyond the original transactions between CMRL and Exalogic. While the initial focus was on whether payments made by the mining company to Exalogic were genuine business transactions, the agency is now examining the additional financial entries allegedly found in Veena's handwritten records, the source and destination of those funds and the purported transfers to Dubai.
Investigators are also examining the people named in the records and the alleged use of the SIM card registered to another person.
The ED has said the amounts contained in the handwritten accounts were over and above the money allegedly received from CMRL. The agency's claims remain allegations at this stage. Its latest searches and seizures will form part of the evidence it seeks to establish as the money laundering investigation proceeds, while Veena's family and the CPI(M) continue to characterise the case as politically motivated.