CMRL pay-off case: Pinarayi's daughter Veena cites health reasons to skip ED interrogation
Veena T has postponed her Enforcement Directorate questioning in the CMRL pay-off case citing health reasons; she remains willing to cooperate and provide documents.
Veena T has postponed her Enforcement Directorate questioning in the CMRL pay-off case citing health reasons; she remains willing to cooperate and provide documents.
Veena T has postponed her Enforcement Directorate questioning in the CMRL pay-off case citing health reasons; she remains willing to cooperate and provide documents.
Kochi: Veena T, daughter of Opposition Leader Pinarayi Vijayan, who was summoned by the Enforcement Directorate (ED) for questioning in the Cochin Minerals and Rutile Limited (CMRL) pay-off case, is unlikely to appear before investigators on Friday.
According to ED sources, Veena has sought an adjournment of the hearing citing health reasons. The ED is learnt to have accepted her request and is expected to issue a fresh summons on a later date.
Veena has reportedly informed the agency through email that she is willing to cooperate with the investigation and appear before officials at a later stage. She has also expressed readiness to submit relevant documents through her lawyer.
Earlier, the agency had issued a notice to Veena under section 50(2) of the Prevention of Money Laundering Act, 2002 (PMLA), directing her to appear for questioning at the Kochi office on June 12. The ED has also summoned CMRL Chairman and Managing Director Sasidharan Kartha and other senior company officials as part of its ongoing investigation into the alleged financial transactions.
Veena is expected to be questioned about the utilisation of the ₹2.78 crore allegedly received by her now-defunct firm, Exalogic Solutions, from CMRL for consultancy services.
According to the Enforcement Directorate, Exalogic Solutions Private Limited, the one-person company owned by Veena Vijayan, received ₹2.78 crore from CMRL as purported payments for IT consultancy services that investigators suspect were not backed by any substantive work.
The agency further alleges that Empower India Capital Investment Private Limited (EICPL), a company operated by CMRL Managing Director Sasidharan Kartha, extended loans amounting to ₹50 lakh to Exalogic and continued the financial support despite repeated delays in repayment.
The ED is reportedly examining whether any assets were acquired using the alleged proceeds and could initiate attachment proceedings if such assets are identified.
Officials are expected to rely on statements recorded from CMRL executives as well as findings from the Serious Fraud Investigation Office (SFIO) during the questioning.
The money-laundering probe gained momentum after the ED conducted searches on May 27 at residences associated with Pinarayi Vijayan in Kannur and Thiruvananthapuram.
During the course of the investigation, the ED froze ₹18.36 crore spread across 242 bank accounts identified during the search operations. The agency claimed that the raids yielded incriminating records, financial accounts, digital evidence, investments and fixed deposits linked to the case.
Apart from the residences of Vijayan, searches were also conducted at the residence of former Kerala Minister and Veena's husband, PA Mohammed Riyas.
Meanwhile, in a boost to the ED investigation, a special court designated for the trial of Companies Act offences in Kochi, on June 8, allowed the agency to obtain documents collected by the SFIO during its investigation into the alleged CMRL pay-off.
In its petition before the court, the ED sought access to all 57 volumes of documents compiled by the SFIO during its probe into the affairs of CMRL. Veena has been named in the SFIO charge sheet and accused of corporate fraud.
The ED's investigation has also received judicial backing, with a Division Bench of the Kerala High Court dismissing a challenge filed by CMRL against the money laundering probe. The court observed that the agency was not required to wait for a prior complaint or FIR before initiating proceedings under the Prevention of Money Laundering Act (PMLA) and issuing summonses.
As part of its investigation, the ED had directed CMRL representatives to furnish details of agreements entered into with Exalogic Solutions, invoices raised by Exalogic for services allegedly provided to the company, and ledger records documenting financial transactions between the two entities. The agency had also sought information regarding CMRL's bank accounts, audited financial statements and documents related to its income tax assessments.