ED freezes ₹18.36 crore and 242 bank accounts of Exalogic-CMRL

The Enforcement Directorate (ED) said it had on Wednesday frozen ₹18.36 crore in 242 accounts identified during search operations conducted in the Exalogic-Cochin Minerals and Rutiled Limited payment case.

Information gathered by the ED showed that T. Veena, daughter of Opposition Leader Pinarayi Vijayan, was staying with her father Mr. Vijayan in Thiruvananthapuram. The premises where she lived were cordoned off after the raids, the ED said.

The ED in a press release claimed that the search yielded several incriminating records, accounts, digital evidence, investments and fixed deposits in banks. The seized evidence was analyzed.

During the search operation, one of the ED search teams was attacked by a group of people after the search operation was over at the premises of Ms. Veena and Mr. Vijayan in Thiruvananthapuram. The mob attacked the cars of the ED team with bricks and iron rods without any provocation, the statement said.

The attack was the result of a conspiracy and not a spontaneous reaction. Three cars in which the ED search team and CRPF personnel were traveling were attacked and damaged. One of the drivers suffered an eye injury in the attack.

The ED followed due process and did not resist the mob nor did the CRPF personnel use any aggression against the mob. The ED has lodged an FIR with the Thiruvananthapuram police for legal action against the attackers, it said.

On Wednesday, simultaneous raids were conducted at 10 locations in Kerala and Bengaluru in connection with an alleged payoff case involving Exalogic Solutions, a company owned by Ms. Veena.

Premises associated with the management of CMRL and Ms Veena in Kannur, Ernakulam, Thiruvananthapuram and Bengaluru were searched. The seized documents were examined.

Proceeds of crime

The previous ED investigation claimed to have established that the proceeds of crime were being generated by the management of CMRL, headed by SN Sasidharan Kartha, along with Ms Veena. Accordingly, search operations were conducted to get evidence of money laundering, agency sources said.

Dismissing the plea filed by CMRL on Tuesday, the Kerala High Court ruled that investigations initiated under the Prevention of Money Laundering Act (PMLA) remain valid as they do not require a predicate offence. The court further held that there was a predicate offense as on the date of judgment as the Serious Fraud Investigation Office (SFIO) had filed a prosecution for a scheduled offense under the PMLA.

CMRL, whose Aluva office was raided by the ED on Wednesday, came under the scrutiny of enforcement agencies for the first time after the Income Tax department seized documents related to alleged bogus expenditure of ₹130 crore during a raid in January 2019.

Mr. Sasidharan Kartha, Managing Director, and his son, Saran S. Kartha, Joint Managing Director, have substantial control over the publicly listed company with 48.75% shares held by the general public and 13.41% by the Kerala State Industrial Development Corporation, a state-owned public sector undertaking. ED officials also searched the CEO’s residence in Aluva, sources said.

Fake expenses

Sources said CMRL has admitted the bogus expenditure before the Income Tax Settlement Commission. Subsequently, the SFIO under the Union Ministry of Corporate Affairs initiated an inquiry based on the findings of the Income Tax Department. The ED has also initiated an investigation under the PMLA. However, CMRL challenged it in the High Court on the ground that there was no predicate offence, and the court directed the ED not to take enforcement action in the case on April 12, 2024, it said.

The SFIO filed a charge sheet under PMLA for corporate fraud against Mr. Sasidharan Kartha and 12 others in the Court of Additional Sessions – VII, Ernakulam on 3 April 2025. According to the SFIO, Mr. Sasidharan Kartha and his son received a cumulative remuneration of ₹3,315,166 crore in 2022-23 despite no dividend payments. The agency also claimed to have uncovered alleged fictitious cash expenditures of ₹182 crore over 15 years. It was further alleged that CMRL paid ₹91 crore for transport services to companies owned by Mr Sasidharan Kartha’s family, sources said.

One of the alleged bogus expenses was a payment to Ms. Veena. Ms. Veena’s company, incidentally a sole proprietorship, allegedly received fraudulent payments of ₹ 2.78 crore from CMRL under the guise of IT consulting services. Further, Empower India Capital Investment Private Limited (EICPL), run by Mr. Sasidharan Kartha, allegedly extended loans totaling ₹50 lakh to Exalogic, despite it failing to repay on time, according to sources.

Published – 27 May 2026 21:21 IST