Thiruvananthapuram, 27 May (H.S.): The Enforcement Directorate (ED) on Wednesday carried out searches at the residences linked to former Kerala Chief Minister and Leader of the Opposition Pinarayi Vijayan as part of its investigation into the controversial CMRL–Exalogic financial transactions case.
The raids were conducted at Vijayan’s rented residence near Bakery Junction in Thiruvananthapuram and at his house in Kannur. Simultaneous searches were also held at the residence of CMRL Managing Director Sasidharan Kartha, Tourism Minister P.A. Mohammed Riyas’s residence in Kozhikode, and the Bengaluru office of Exalogic Solutions, the company owned by Vijayan’s daughter Veena Vijayan. In total, ED teams conducted raids at 12 locations across Kerala and Karnataka.
Sources said Pinarayi Vijayan, Veena Vijayan and members of her family were present inside the Thiruvananthapuram residence when ED officials arrived in the early hours of Wednesday amid tight security arrangements.
The searches come a day after the Kerala High Court dismissed petitions filed by Cochin Minerals and Rutile Limited (CMRL) and its officials challenging the ED’s summons and investigation in the alleged “monthly payment” or “Masappadi” case.
The petitioners had argued that the ED had no authority to issue summons regarding financial transactions between CMRL and Exalogic Solutions, including alleged consultancy payments. However, Justice T.R. Ravi rejected the plea, observing that challenging summons issued during the preliminary stage of an investigation was premature.
The controversy stems from findings of the Income Tax Interim Settlement Board, which reportedly concluded that CMRL had paid ₹1.72 crore to Exalogic Solutions for services that were allegedly never rendered. CMRL had contended that since it had already obtained relief from the Income Tax Settlement Board, further ED proceedings under the Prevention of Money Laundering Act (PMLA) were not maintainable.
Rejecting this argument, the High Court clarified that relief granted under income tax settlement mechanisms does not prevent the ED from pursuing investigations into alleged money laundering offences under the PMLA. The court also pointed out that, as per Supreme Court rulings, the ED does not require a separate FIR to proceed with investigations under the anti-money laundering law.
Following the High Court order, ED teams launched coordinated searches at multiple locations connected to the case early on Wednesday morning.
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Hindusthan Samachar / Arun Lakshman
