ED widens CMRL-Exalogic probe, Veena Vijayan likely to face fresh questioning

The Enforcement Directorate (ED) has expanded its investigation into the alleged CMRL-Exalogic 'masappadi' case, examining whether Cochin Minerals and Rutile Ltd. (CMRL) received undue benefits from the previous Left Democratic Front (LDF) government while making payments to Exalogic Solutions, the IT firm owned by T. Veena, daughter of former Kerala chief minister Pinarayi Vijayan.

The agency's latest line of inquiry comes after Veena underwent more than 10 hours of questioning at the ED's Kochi office on Thursday during the second round of interrogation. Officials are expected to summon her again as the probe progresses.

Investigators are examining whether the consultancy arrangement between CMRL and Exalogic was part of a broader quid pro quo under which the company allegedly received concessions or other benefits during the first Pinarayi Vijayan government.

Veena appeared before the ED after receiving a fresh summons following the Kerala High Court's approval for further investigation into the case. She arrived at the agency's Kochi office at around 9.30 am, accompanied by her husband and Kerala minister P.A. Mohammed Riyas.

The ED's renewed questioning follows its acquisition of 134 annexures attached to the serious fraud investigation office (SFIO) charge sheet after the Company Court in Kochi rejected CMRL's objections to handing over the documents.

Officials are understood to have questioned Veena about Exalogic's financial transactions with CMRL as well as allegations that the mining company may have received favourable treatment from the state government during the period in question.

Sources indicated that Veena maintained there was nothing improper about the consultancy agreement. However, investigators are continuing to scrutinise the financial records and supporting documents.

The case originates from findings by the Income Tax Settlement Commission, which noted that CMRL paid Rs 1.72 crore to Exalogic between 2017 and 2020 as consultancy fees despite allegedly receiving no corresponding IT services.

Those findings prompted an SFIO investigation, following which the ED registered a case under the Prevention of Money Laundering Act (PMLA).

During her earlier appearance before the agency, Veena was asked to explain the nature of the services provided by Exalogic and submit supporting documentation. The ED also inspected her HDFC Bank locker as part of the investigation.

With the questioning of CMRL officials already completed, the agency is now focusing on tracing the financial trail and determining whether the payments were linked to any decisions taken by the then Kerala government.

With IANS inputs