The Directorate of Enforcement (ED), Kochi Zonal Office, has frozen around ₹18.36 crore across nearly 242 bank accounts and seized several incriminating records, digital evidence and investment-related documents during searches linked to Cochin Minerals and Rutile Ltd (CMRL) and Exalogic Solutions Pvt Ltd.
The searches were conducted on May 27 across 10 locations in Kottayam, Ernakulam, Kannur, Thiruvananthapuram and Bengaluru under the Prevention of Money Laundering Act (PMLA), the ED said in a statement.
The agency carried out the raids at the premises linked to CMRL, its Managing Director S N Sasidharan Kartha, director Saran S Kartha, Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan, and her company Exalogic Solutions Pvt Ltd.
CMRL is a public listed company in which 48.75% shares are held by general public while 13.4% shares are held by Kerala PSU Kerala State Industrial Development Corporation.
ED alleges fake expenses, bribe payments
According to the ED, the money laundering investigation stems from findings of the Income Tax Department and the Serious Fraud Investigation Office (SFIO), which allegedly uncovered fake expenditure entries worth around ₹130 crore by CMRL.
The ED claimed that SFIO had filed a prosecution complaint in April 2025 against Sasidharan Kartha and 12 others before an Ernakulam court for alleged corporate fraud.
The agency alleged that CMRL booked fictitious cash expenses amounting to ₹182 crore over 15 years, allegedly used for paying bribes to various persons.
The ED further alleged that Exalogic Solutions Pvt Ltd received Rs 2.78 crore from CMRL under the guise of IT consultancy services without rendering any services.
Kerala High Court order cited
The ED said the Kerala High Court on May 26 dismissed a writ petition filed by CMRL challenging the PMLA investigation.
According to the agency, the court held that initiation of the money laundering probe was valid and that a predicate offence existed following the SFIO prosecution complaint.
Attack on ED team during search
The enforcement agency also alleged that one of its search teams was attacked by a group of people after the searches at the residence of Veena Vijayan and Pinarayi Vijayan in Thiruvananthapuram.
The ED claimed that its vehicles were attacked with bricks and iron rods, resulting in damage to three vehicles and injuries to one driver. The agency said an FIR has been lodged with the local police regarding the incident.
Probe to continue
The ED said investigations are continuing to identify other persons who allegedly received bribe money from CMRL and to trace the proceeds of crime.