ED raids 10 locations in CMRL fraud probe, seizes FDs linked to Veena Vijayan
Synopsis
The ED has raided 10 locations tied to CMRL and Veena Vijayan — daughter of former Kerala CM Pinarayi Vijayan — seizing fixed deposits and investment papers. The action follows a Kerala High Court ruling that green-lit the PMLA probe, and comes as investigators allege ₹182 crore in fictitious expenses and a ₹2.78 crore payment to Veena Vijayan's IT firm from the publicly listed minerals company.
Key Takeaways
The ED searched nearly 10 locations on 27 May across Kannur, Ernakulam, Thiruvananthapuram , and Bengaluru in the CMRL money laundering case.
Investment documents and bank fixed deposits were seized and are being examined under the PMLA .
Veena Vijayan's firm Exalogic Solutions allegedly received ₹2.78 crore from CMRL as purported IT consultancy fees.
Investigators allege ₹182 crore in fictitious cash expenses over 15 years and ₹91 crore paid to Kartha family-owned transport firms.
The Kerala High Court on 26 May 2026 dismissed CMRL's challenge to the ED probe, upholding the agency's jurisdiction under PMLA.
KSIDC , a Kerala government entity, holds a 13.41% stake in CMRL as of 31 March 2023 .
The Enforcement Directorate (ED) on Wednesday, 27 May conducted searches at nearly 10 locations across Kerala and Bengaluru linked to Cochin Minerals and Rutile Limited (CMRL), its top executives, and Veena Vijayan — daughter of former Kerala Chief Minister Pinarayi Vijayan — as part of a money laundering investigation into an alleged corporate fraud at the publicly listed minerals company. Investment documents and bank fixed deposits were seized and are under scrutiny under the Prevention of Money Laundering Act (PMLA).
Where the Raids Were Conducted
Search operations were carried out in Kannur, Ernakulam, Thiruvananthapuram, and Bengaluru. The premises targeted belonged to CMRL Managing Director S.N. Sasidharan Kartha, Joint Managing Director Saran S. Kartha, and Veena Vijayan, who heads the Bengaluru-based IT firm Exalogic Solutions Private Limited.
According to reports, intelligence inputs indicated that Veena Vijayan was present at a residence in Thiruvananthapuram alongside her father, Pinarayi Vijayan, when the ED team arrived to conduct the searches.
The CMRL Fraud: Background
The case traces back to an Income Tax Department raid on CMRL in January 2019, during which alleged fake expenditure entries worth nearly ₹130 crore were detected. The company subsequently admitted to the irregularities before the Income Tax Settlement Commission.
This prompted the Serious Fraud Investigation Office (SFIO) to initiate a probe at the direction of the Ministry of Corporate Affairs. On 3 April 2025, the SFIO filed a prosecution complaint before the Additional Sessions Court-VII in Ernakulam against Sasidharan Kartha and 12 others.
Investigators alleged that fictitious cash expenses amounting to ₹182 crore were recorded over a span of 15 years and that CMRL paid nearly ₹91 crore towards transport services to firms owned by the Kartha family. Exalogic Solutions, owned by Veena Vijayan, allegedly received ₹2.78 crore from CMRL in the guise of IT consultancy services.
Kerala High Court Upholds ED Probe
The raids follow the Kerala High Court's dismissal on 26 May 2026 of CMRL's plea challenging the ED investigation. The court observed that a predicate offence was not mandatory at the initial stage of a PMLA probe, and noted that the SFIO complaint now constituted a scheduled offence under the Act — effectively clearing the legal path for the agency to proceed.
CMRL is a publicly listed company in which 48.75% of shares are held by public investors. The Kerala State Industrial Development Corporation (KSIDC), a state government entity, holds a 13.41% stake as of 31 March 2023, adding a layer of political sensitivity to the investigation.
Political Significance
The involvement of Veena Vijayan and the reported presence of former Chief Minister Pinarayi Vijayan at the searched premises are expected to intensify political scrutiny. This is the first major ED action directly touching the Vijayan family, coming after years of opposition demands for a central-agency probe into CMRL's finances. The investigation is likely to deepen pressure on the ruling Left Democratic Front (LDF) government in Kerala ahead of the state's electoral cycle.
Point of View
Coming within 24 hours of the Kerala High Court's green light, signals that the agency had its operational groundwork ready and was waiting for legal clearance — not a coincidence of timing. What makes this probe structurally significant is the state's own skin in the game: KSIDC's 13.41% stake in CMRL means Kerala's government is simultaneously an investor in the company under scrutiny and the political backer of the family now in the ED's crosshairs. That conflict has received far less attention than the headline raids. The ₹2.78 crore Exalogic payment is modest in isolation, but its significance lies in what investigators say it represents — a conduit connecting a listed public company to the Chief Minister's household. Whether the ED can build a sustainable PMLA case beyond the SFIO's predicate complaint will determine whether this becomes a landmark accountability moment or another inconclusive probe in India's long history of high-profile financial investigations.
NationPress
9 Aug 2026
Frequently Asked Questions
Why did the ED raid CMRL and Veena Vijayan's premises?
The ED conducted the raids as part of a money laundering investigation under the PMLA into alleged corporate fraud at Cochin Minerals and Rutile Limited (CMRL). The action followed a Kerala High Court order on 26 May 2026 that dismissed CMRL's challenge to the probe and confirmed the SFIO prosecution complaint as a scheduled offence under the Act.
What is Veena Vijayan's alleged connection to the CMRL case?
Veena Vijayan owns Exalogic Solutions Private Limited, a Bengaluru-based IT firm that allegedly received ₹2.78 crore from CMRL in the guise of IT consultancy services, according to investigators. She is the daughter of former Kerala Chief Minister Pinarayi Vijayan.
What are the core allegations against CMRL?
Investigators allege that CMRL recorded fictitious cash expenses of ₹182 crore over 15 years and paid nearly ₹91 crore to transport firms owned by the Kartha family. An Income Tax Department raid in January 2019 had first detected fake expenditure entries of nearly ₹130 crore, which the company later admitted before the Income Tax Settlement Commission.
What did the Kerala High Court rule on the ED's CMRL probe?
On 26 May 2026, the Kerala High Court dismissed CMRL's plea challenging the ED investigation, ruling that a predicate offence is not mandatory at the initial stage of a PMLA probe. The court also noted that the SFIO prosecution complaint now constitutes a scheduled offence under the Act.
Who are the key accused in the CMRL fraud case?
The SFIO filed a prosecution complaint on 3 April 2025 against CMRL Managing Director S.N. Sasidharan Kartha and 12 others before the Additional Sessions Court-VII in Ernakulam. The ED's searches also covered Joint Managing Director Saran S. Kartha and premises linked to Veena Vijayan.
