CMRL monthly pay-off case: ED to issue summons to Pinarayi's daughter Veena
The Enforcement Directorate will summon CMRL officials and Veena T regarding money laundering charges, following court approvals and two favourable rulings.
The Enforcement Directorate will summon CMRL officials and Veena T regarding money laundering charges, following court approvals and two favourable rulings.
The Enforcement Directorate will summon CMRL officials and Veena T regarding money laundering charges, following court approvals and two favourable rulings.
The Directorate of Enforcement (ED) probing the money laundering charges against the Cochin Minerals and Rutile Limited (CMRL) and the monthly pay-offs to Exalogic Solutions Private Limited will send a summons to the office bearers of the CMRL and Veena T, daughter of Opposition Leader Pinarayi Vijayan. The summons will be issued under the provisions of section 50(2) of the Prevention of Money Laundering Act, 2002 (PMLA).
"The approval has been received for issuing the summons and further steps will be taken accordingly," an official with the ED,Kochi told Onmanorama. It is learnt that Veena will be asked to appear for an interrogation this week itself.
The ED has won two favourable court orders in connection with the probe, which has prompted the latest move. Kochi Special Court for trial of the offence under PMLA has allowed the ED's petition to receive copies of the documents submitted by the Serious Fraud Investigation Office (SFIO). In the petition, the ED sought copies of the 57 volumes of documents the SFIO had prepared as part of the probe against the CMRL. Veena is accused of corporate fraud in the charge sheet filed by the SFIO.
The HC division bench has also quashed an appeal filed by the CMRL against the ED probe and observed that no prior complaint or FIR was required to initiate an investigation into the money laundering charges and issue a summons.
The ED had earlier issued summonses to the CMRL representatives to furnish details of agreements entered into between Exalogic and the CMRL, copies of invoices issued by Exalogic to CMRL against the services rendered and the ledger account containing transactions between the CMRL and the Exalogic. The ED had also sought the list of the bank accounts maintained by the CMRL, audited balance sheets and documents related to Income Tax assessment.
According to the ED, Veena's firm, Exalogic Solutions Private Limited (an One-Person Company), received fraudulent payments totaling ₹2.78 crore from the CMRL under the guise of IT consultancy services. Further Empower India Capital Investment Private Limited (EICPL) operated by Sasidharan Kartha, MD of CMRL, extended loans to Exalogic totalling ₹50 Lakhs, despite Exalogic failing to make timely repayments.