Exalogic-CMRL pay case: Kerala UDF govt orders police probe into ED report to crack down on Pinarayi Vijayan

Pinarayi Vijayan Photo Credit: ANI

The Congress-led United Democratic Front (UDF) government in Kerala on Tuesday (September 22, 2026) ordered a police probe into the politically charged CMRL-Exalogic payment controversy targeting Leader of the Opposition and former Chief Minister Pinarayi Vijayan, his daughter T Veena and son-in-law Mohamed Riyas and a former minister.

Home Minister Ramesh Chennithala signaled to reporters that the government’s decisions were shaped by “legal considerations and not politics,” as the Communist Party of India (Marxist) claims.

“In the case of Vijay Madanlal (Choudhary) vs. Union of India, the Supreme Court held that law enforcement agencies could only act on the basis of information shared in the records of the Enforcement Directorate (ED) under Section 66 (2) of the Prevention of Money Laundering Act (PMLA). Neither the government nor the police have any discretion,” the Advocate General said in the matter.

However, Mr Chennithala said the Supreme Court in Lalita Kumari v State of Uttar Pradesh in 2013 held that the registration of an FIR in a case of suspected commercial fraud or corruption depends on whether the mandatory preliminary investigation reveals a cognizable offence, thereby relaxing the requirement to register a case immediately on receipt of incriminating information from a third party.

“I have taken the matter to Chief Minister VD Satheesan. The government has directed the state police chief (SPC) to decide on the nature of the preliminary investigation and the investigating agency. The government will issue the required order soon,” he added.

Mr. Chennithala declined to say whether the preliminary investigation would be conducted by the Vigilance and Anti-Corruption Bureau (VACB) or the crime branch of the state police. “That is the prerogative of the SPC,” he added.

When asked if the upcoming investigation would be preliminary, Mr. Chennithala said, “I can only state that an investigation will be conducted.”

Allegations of ED

The ED charged that CMRL, a chemical company in which the Kerala government has a minority stake, disguised Mr Vijayan’s supporters from 2017-2021 when he was chief minister as representatives of Ms Veena’s now-defunct software firm Exalogic Solutions for consultancy services that were allegedly not provided.

Last month, the ED sent a 25-page report to state police chief Ravad Chandrasekhar demanding prosecution of Mr. Vijayan under the Prevention of Corruption Act, 1985 (PCA). The ED in the report also claimed to have seized a diary detailing an allegedly illegal financial transaction during a raid at Mr Vijayan’s house in Thiruvananthapuram in May.

Mr. Vijayan disputed the existence of any incriminating entries in the diary. At the same time, Mr. Riyas claimed that the personal diary contained scribbles about Ms. Veena’s business plans in the Persian Gulf, which he claimed were yet to materialize.

At a press conference last week, Mr. Satheesan highlighted the alleged discrepancy between the statements of the two CPI(M) leaders. He also said that the ED report contains serious allegations against former ministers.

An official attached to Mr. Chennithala’s office told The Hindu that the Home Secretary had proposed a Special Investigation Team (SIT) headed by the Additional Director General of Police (ADGP), Crime Branch. “However, on the advice of the AG, Mr. Chennithala reserved the judgment to the SPC,” he added.

Published – 22 Sep 2026 14:07 IST