The Enforcement Directorate (ED) has escalated its actions in the CMRL-Exalogic case, filing a petition before a special court in Kochi to seek records from the Serious Fraud Investigation Office (SFIO) under the Prevention of Money Laundering Act (PMLA). The petition, submitted on Saturday, requests copies of all 57 volumes of documents compiled by the SFIO during its investigation into the dealings of Cochin Minerals and Rutile Ltd (CMRL).
Background of the Case
According to the ED, the Income Tax Department conducted a search at CMRL in January 2019, uncovering alleged fake expenses amounting to approximately Rs 130 crore. CMRL reportedly admitted to these fake expenses before the Income Tax Settlement Commission (ITSC). The ITSC's order highlighted findings of bribes paid by CMRL to various individuals, along with admissions made by CMRL personnel.
Based on the Income Tax Department's findings, a complaint was lodged with the SFIO, which then initiated investigations as directed by the Ministry of Corporate Affairs. Subsequently, the ED launched a probe under the PMLA, relying on the SFIO's investigations.
SFIO and ED Findings
The SFIO filed a prosecution complaint on April 3, 2025, for corporate fraud against Sasidharan Kartha and 12 others before the Additional Sessions Court-VII in Ernakulam. The SFIO's investigations revealed fictitious cash expenses of Rs 182 crore over 15 years, allegedly used for bribing various individuals.
In a statement, the ED noted that one of the fake expenses involved payments to Veena, daughter of former Kerala Chief Minister Pinarayi Vijayan. Veena's company, Exalogic Solutions Pvt Ltd, a one-person company, received fraudulent payments totaling Rs 2.78 crore from CMRL under the guise of IT consultancy services. Additionally, Empower India Capital Investment Pvt Ltd (EICPL), operated by CMRL Managing Director Sasidharan Kartha, extended loans of Rs 50 lakh to Exalogic, despite the company's failure to make timely repayments.
ED Raids and Seizures
The ED's investigations determined that proceeds of crime were generated by CMRL's management, led by Kartha, and used to pay bribes to various individuals. Veena was identified as a recipient of money from CMRL without providing any services. On May 27, the ED conducted simultaneous raids across Kerala, seizing incriminating records, account details, digital evidence, investments, and bank fixed deposits.
