Thiruvananthapuram: CPI(M) state secretary M V Govindan on Wednesday questioned why the ED was not investigating the funds allegedly received from Cochin-based mining company CMRL in the past by some ministers in the current UDF administration.
Terming the Enforcement Directorate (ED) move seeking registration of an FIR against opposition leader Pinarayi Vijayan, his daughter Veena T and her husband P A Mohamed Riyas as “politically motivated”, Govindan hinted at a possible deal between the Congress and the BJP on the issue.
He contended that the ED’s alleged bribery case involving Cochin Minerals and Rutile Ltd (CMRL) pertains to its financial transactions of around Rs 152 crore with various individuals and entities and of these only those with Veena and her now defunct firm, Exalogic Solutions, were being probed.
Speaking to the press in Thiruvananthapuram, Govindan dismissed the recent actions by the ED as baseless, stating, “The Enforcement Directorate is trying to manufacture false stories against Pinarayi Vijayan and P A Mohammed Riyas. None of these fabricated stories is going to work in Kerala.” He added that the party was uncertain about the government’s position regarding the matter.
Govindan further criticised the Congress party for what he described as hypocrisy and double standards. He said, “But the Congress has clearly adopted a double standard. They were the ones who had earlier questioned why Pinarayi Vijayan was not being arrested. What we need to know now is whether a deal is being worked out with the BJP.”
Reflecting on the party’s history, Govindan emphasised the CPI(M)’s resilience, stating, “Our party has come this far after fighting from the grassroots, facing imprisonment and enduring every kind of hardship. We have fought even while being confined behind bars. So, nobody should come here trying to frighten us by showing us a ‘paper tiger’. We have no intention of being intimidated by such threats, and we will not bow down to them.”
The statements arise amid heightened political tensions in Kerala following the ED’s request to the state Director General of Police for a First Information Report (FIR) against Vijayan, his daughter T Veena, and son-in-law P A Mohammed Riyas.
The ED has officially approached the Kerala Police seeking to register the FIR in connection with corruption charges linked to the Cochin Minerals and Rutile Limited (CMRL) financial transaction case, which is under investigation under the Prevention of Money Laundering Act (PMLA). The ED’s Kochi zone reportedly sent the letter last week.
This development follows searches conducted in late August at eight locations in Kozhikode related to the ongoing CMRL case, continuing from earlier raids on May 27. During those searches, the ED reportedly uncovered additional evidence of a money trail involving Veena.
CMRL is a publicly listed company with 48.75 per cent of shares held by the public and 13.41 per cent held by the Kerala State Industrial Development Corporation, a state-owned enterprise, as of March 31, 2023.
Previous investigations by the Income Tax Department in January 2019 identified approximately Rs 130 crore in fake expenses, which CMRL admitted before the Income Tax Settlement Commission (ITSC). The ITSC found evidence of bribes paid by CMRL personnel, leading to a complaint to the Serious Fraud Investigation Office (SFIO) and subsequent SFIO investigations as directed by the Ministry of Corporate Affairs.
The ED commenced its PMLA investigation based on the SFIO’s findings. However, CMRL challenged the investigation in the Kerala High Court, arguing a lack of predicate offence. The court had barred coercive action by the ED on April 12, 2024.
On April 3, 2025, the SFIO filed a prosecution complaint against Sasidharan Kartha, Managing Director of CMRL, and 12 others for corporate fraud before the Additional Sessions Court VII in Ernakulam. The complaint included scheduled PMLA offences.
The SFIO alleged that Sasidharan Kartha and his son Saran S Kartha received Rs 30.63 crore in cumulative remuneration from financial year 2015-16 to 2022-23 without dividend payments. Investigations also uncovered Rs 182 crore in fictitious cash expenses over 15 years, used for bribing various individuals. Additionally, CMRL paid Rs 91 crore for transport services to companies owned by the Kartha family.
The ED stated that one fake expense involved payments to Veena’s company, Exalogic Solutions Private Limited, which reportedly received Rs 2.78 crore in fraudulent payments from CMRL under the pretense of IT consultancy services. Empower India Capital Investment Private Limited, operated by Sasidharan Kartha, extended loans of Rs 50 lakh to Exalogic despite delays in repayment.
The Kerala High Court dismissed a writ petition filed by CMRL on May 26, confirming that PMLA investigations could proceed without a predicate offence and noting the existence of such an offence based on SFIO’s complaint.
ED officials asserted that proceeds of crime were generated by CMRL’s management, led by Sasidharan Kartha, and used to pay bribes. Intelligence indicated Veena received money from CMRL without providing services and that she resided with her father in Thiruvananthapuram, where searches were conducted.
During the May searches, the ED seized numerous incriminating documents, digital evidence, investments, and fixed deposits. Approximately Rs 18.36 crore in around 242 accounts were frozen, with analysis of the evidence ongoing.
