Exalogic-CMRL payout case: ED conducts simultaneous raids in Ernakulam, Kerala

Police on Wednesday set up barricades outside the ED office in Kochi to secure the premises | Photo credit: H. Vibhu

A day after the Kerala High Court granted permission to probe alleged financial transactions between Exalogic Solutions, a firm owned by former Chief Minister Pinarayi Vijayan T. Veena’s daughter, and Cochin Minerals and Rutiled Limited (CMRL) in an alleged kickback case, the Enforcement Directorate (ED) launched a series of simultaneous raids across the state on Wednesday (May 27).

The raid by officials of the ED zonal office in Kochi began around 7 am. The agency received the High Court order rejecting CMRL’s plea to quash the case at around 8 pm on Tuesday and then hastily planned the raids.

In Ernakulam, searches are underway at CMRL’s corporate office in Aluva, the residence of its managing director Sasidharan Karth, also in Aluva, and the office of sister concern CMRL. The raids are reportedly underway at the residences of the company’s finance officials and two locations in Bengaluru associated with Exalogic Solutions.

Searches are also underway at Mr Vijayan’s rented house at Bakery Junction in Thiruvananthapuram, his ancestral home in Kannur and the residence of former minister and Ms Veena’s husband PA Mohamed Riyas. However, ED officials remain tight-lipped about the operations.

While dismissing CMRL’s plea, the court directed officials of the firm to appear before the ED and cooperate in the probe into the alleged irregularities in the financial transactions.

Earlier on February 5, 2024, a team of officials from the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs inspected the CMRL office as part of their investigation. The SFIO constituted a six-member team after the Union government ordered an inquiry into the affairs of Exalogic Solutions Pvt. Ltd., CMRL and Kerala State Industrial Development Corporation (KSIDC) Ltd., a state government entity holding 13.4% stake in CMRL.

The dispute erupted after the Income Tax Provisional Settlement Board issued a report in August 2023 stating that Ms Veena and her company had received ₹1.72 crore as monthly payments from CMRL over three years, despite there being no evidence of services rendered. The report further states that the payments were made because of her relationship with a prominent person. The documents seized by the Income Tax Department allegedly contained details of payments to politicians, temples, government employees and media houses. It was also alleged that CMRL has paid around ₹135 crore to political leaders and government officials since 2016.

The case created a major political controversy in the state, with the then opposition UDF using it to target Mr Vijayan and his government.

Published – 27 May 2026 11:39 IST