CMRL case: ED writes to Keralam DGP seeking FIR against ex-CM Vijayan, daughter and son-in-law

KOCHI/NEW DELHI: The Enforcement Directorate on Tuesday wrote to the Keralam DGP seeking an FIR against former chief minister Pinarayi Vijayan, his daughter Veena T and son-in-law P A Mohammed Riyas, apart from some others, on charges of corruption and bribery in the CMRL-Exalogic case, official sources said.

The central agency sent a communication under Section 66(2) of the Prevention of Money Laundering Act (PMLA), citing findings from its ongoing investigation in the case, sources told PTI.

The probe agency sought a police FIR under relevant sections of the Prevention of Corruption Act and some other laws, claiming it has statements from some accused who alleged that the 81-year-old Leader of Opposition Vijayan took a bribe from CMRL during his tenure as chief minister through his daughter and Riyas subsequently transferred these funds to Dubai.

Sources said the ED named a total of 13 entities to be arraigned as accused, including the three Vijayan family members, Veena's now-defunct IT company Exalogic Solutions, CMRL promoter S M Sasidharan Kartha, former CMRL CFO P Suresh Kumar, a company named Empower India Capital Investments and some other individuals and unknown others.

Section 66(2) of the PMLA empowers the ED to share findings from its criminal investigation with a law enforcement agency for registering a fresh FIR or complaint. The ED can book a PMLA case based on such a police case.

The ED has written to Keralam Director General of Police (DGP) Ravada A Chandrasekhar for registration of a police FIR, claiming its probe provided "evidence" against the named entities, the sources said.

While the Vijayan family and the CPI(M) offered no immediate comment, the veteran Marxist leader earlier asserted "his hands were clean" and called the ED case against his daughter a political vendetta.

Riyas has stated that he and the party would politically and legally deal with the ED case, including the searches conducted at their homes and the businesses of people linked to them.

CPI(M) state secretary M.V. Govindan expressed a similar view, claiming the ED was trying to target Riyas.

Keralam Home Minister Ramesh Chennithala said in Thiruvananthapuram on Tuesday that the ED letter would be examined and a decision taken as per the law. The Congress-led UDF is in power in the state.

It is alleged by the ED that Keralam mining firm Cochin Minerals and Rutile Ltd (CMRL) made fraudulent payments worth Rs 2.78 crore to Veena's now-defunct company Exalogic Solutions under the guise of 'IT consultancy services'. The ED claimed Veena's company was a "corporate vehicle" used for routing "sham" payments.

The federal agency raided Veena, who was living with Vijayan at a rented accommodation in the state capital Thiruvananthapuram, in June and subsequently questioned her.

It had said in a statement in August that some "handwritten" notes were seized during searches against Veena T and that these contained details of certain fund transfers to Dubai.

The ED claimed that the CMRL management and Veena generated "proceeds of crime".

The PMLA case was filed in March 2024 after the ED took cognisance of a complaint registered by the Serious Fraud Investigation Office (SFIO), the investigation arm of the Ministry of Corporate Affairs, which later filed a prosecution complaint (chargesheet) before an Ernakulam court in April 2025.

The CMRL came under greater scrutiny after an Income Tax Department raid in January 2019unearthed alleged fake expenses to the tune of Rs 130 crore.

Court documents state that the company "inflated" its expenditure by Rs 133.82 crore by booking "bogus" cash expenses under the heads of 'transportation' and 'sludge handling' between the financial years 2012-13 and 2018-19, and generated cash that was used to make illegal payments to politicians, parties, media houses and public servants.

The court papers add that CMRL CFO and MD "admitted" before tax authorities that such cash payments were made to ensure smooth business operations, as they faced threats of closure of the business and environmental challenges.

Officials said CMRL "admitted" to making these "fake" expenses before the Income Tax Settlement Commission. Later, a complaint was made to the SFIO.

In its prosecution complaint, the SFIO said CMRL made fictitious cash expenses worth Rs 182 crore over 15 years to "bribe" various people, and that it paid Rs 91 crore towards transport services to companies owned by CMRL promoter S N Sasidharan Kartha and his family.