Kochi, 26 June (H.S.):The Directorate of Enforcement (ED) has widened its money laundering investigation into the Cochin Minerals and Rutile Ltd. (CMRL)–Exalogic financial transactions, expanding the scope of the probe to examine whether the Left Democratic Front (LDF) government in Kerala extended any undue favours to CMRL during its tenure.

According to sources, investigators are scrutinising the benefits, approvals and concessions allegedly received by CMRL from the state government to determine whether they were linked to the controversial financial arrangement between CMRL and Exalogic Solutions, the IT firm owned by Chief Minister Pinarayi Vijayan's daughter, T. Veena.

The agreement between CMRL and Exalogic was signed during the first Pinarayi Vijayan government. The ED believes there are several ambiguities surrounding the consultancy agreement and is examining whether CMRL received any reciprocal benefits from the state government in return for entering into the contract with Exalogic. The agency's investigation is now focused on establishing whether the alleged payments formed part of a broader quid pro quo arrangement.

Officials are also seeking clarity on the utilisation of the Rs 2.78 crore paid by CMRL to Exalogic. Investigators reportedly believe there is insufficient evidence to justify the payments and are examining whether the transactions were backed by genuine business services.

The ED has also found inconsistencies in the statements given by T. Veena during questioning, as well as contradictions in the testimonies of senior CMRL officials. In view of these discrepancies, the agency is expected to summon Veena for a third round of questioning next week.

She was questioned for nearly 10 hours in Kochi on Thursday after the ED obtained key documents from the Serious Fraud Investigation Office (SFIO) through a court order. The records include 134 annexures accompanying the SFIO charge sheet, containing financial documents and transaction details relating to CMRL, Exalogic and other entities that investigators believe are crucial to the ongoing money laundering probe.

The ED is expected to analyse these documents further before deciding its next course of action in the high-profile investigation.

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Hindusthan Samachar / Arun Lakshman