CPI(M) distances party from T. Veena after ED summons

The Enforcement Directorate's decision to summon T. Veena, daughter of former Kerala chief minister Pinarayi Vijayan, for questioning in a money laundering case linked to mining company Cochin Minerals and Rutile Ltd (CMRL) triggered sharp political reactions on Tuesday, 9 June, with senior CPI(M) leaders insisting that the matter was personal and should not be linked to either the party or Vijayan.

Veena has been asked to appear before the agency's Kochi zonal office on 12 June, where her statement will be recorded under the Prevention of Money Laundering Act (PMLA). The summons forms part of an ongoing investigation into alleged financial transactions between CMRL and Exalogic Solutions Private Limited, a now-defunct IT company associated with Veena.

As Opposition parties stepped up attacks on the CPI(M), party leaders sought to draw a clear distinction between the case and the organisation. Rajya Sabha MP John Brittas said the investigation should be allowed to proceed without political interference. "Veena's case should proceed on its own merits. Let the investigation take its course," Brittas told reporters in New Delhi.

He noted that Veena had already submitted information sought by the Serious Fraud Investigation Office (SFIO) and argued that attention should also be directed towards the wider financial dealings of CMRL.

Calling for a broader probe into the company's political contributions, Brittas said several political parties had publicly acknowledged receiving funds from CMRL and questioned whether all such donations had been properly disclosed to the Election Commission. "Viewed in that context, the disputes relating to Veena's case are comparatively small," he said.

Senior CPI(M) leader P.K. Krishnadas echoed the party's hands-off approach, arguing that there was no reason for the organisation to officially comment on the matter. "She is capable of handling the matter legally. She will take care of her case. There is no need for the CPI(M) to express an opinion on this," he said.

Former Kerala health minister and senior CPI(M) leader K.K. Shailaja also maintained that the case was solely Veena's responsibility. "Let the summons come. Veena will respond and produce the necessary documents. This has nothing to do with leader of opposition Pinarayi Vijayan. Therefore, CPI(M) need not reply to it," she said.

The coordinated response from CPI(M) leaders appeared aimed at insulating both the party and Vijayan from a controversy that political opponents have increasingly sought to connect to the former chief minister.

The remarks come weeks after an ED raid at Veena's residence in Thiruvananthapuram sparked controversy and drew criticism following allegations that CPI(M) workers engaged in violent protests against the central agency's actions.

State home minister Ramesh Chennithala declined to comment on the substance of the case, saying only that the investigation should be allowed to proceed.

Congress MLA Mathew Kuzhalnadan, however, claimed the probe could eventually have wider ramifications. He alleged that several aspects of the case remained unexplored and suggested that a Central Bureau of Investigation inquiry could potentially bring Vijayan himself under scrutiny. Kuzhalnadan also reiterated allegations that Exalogic had received payments despite not providing any corresponding services.

BJP leader Shone George, one of the complainants whose representations helped trigger scrutiny of the transactions, said the ED's move was a natural progression of the investigation. "One of the accused is the daughter of a former chief minister. The ED should move ahead by closing all loopholes and establishing the case," he said.

According to the ED, the investigation centres on allegations that CMRL made payments totalling Rs 2.78 crore to Exalogic Solutions under the guise of IT consultancy services despite little evidence of services being rendered.

The agency is also examining financial transactions involving Empower India Capital Investment Private Limited (EICPL), a company operated by CMRL managing director Sasidharan Kartha. Investigators allege that EICPL extended loans worth Rs 50 lakh to Exalogic even as the company failed to repay earlier dues within stipulated timelines.

The ED has alleged that the transactions enabled the generation of "proceeds of crime" by those involved, including Veena and the CMRL management led by Kartha.

Last month, ED officials carried out searches at multiple locations, including the residence where Veena lives in Thiruvananthapuram.

The case stems from findings by the SFIO, which had earlier flagged the payments between CMRL and Exalogic and raised questions about the nature of the consultancy arrangement. The ED subsequently launched a money laundering investigation based on those findings and is now examining whether the transactions violated provisions of the PMLA.

With PTI inputs