CMRL pay-off case: ED questions Sasidharan Kartha's wife, son
The ED is investigating suspicious financial transactions between CMRL and Exalogic Solutions, questioning CMRL MD's family and summoning Veena Vijayan, amid allegations of ₹2.78 crore paid without services.
The ED is investigating suspicious financial transactions between CMRL and Exalogic Solutions, questioning CMRL MD's family and summoning Veena Vijayan, amid allegations of ₹2.78 crore paid without services.
The ED is investigating suspicious financial transactions between CMRL and Exalogic Solutions, questioning CMRL MD's family and summoning Veena Vijayan, amid allegations of ₹2.78 crore paid without services.
Kochi: The Enforcement Directorate (ED) probing the alleged suspicious financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Pvt Ltd, on Tuesday, questioned Jaya S Kartha, wife of CMRL MD Sasidharan Kartha, and their son, Saran S Kartha, at its Kochi zonal office.
As part of the ongoing probe, the ED had reportedly directed Saran Kartha to produce documents related to the financial dealings of the company over the past 15 years. It is learnt that the ED is focusing on a ₹50 lakh loan extended to Exalogic Solutions by Empower India Capital Investment Private Limited, a company in which Jaya Kartha serves as a director. The agency is examining the circumstances under which the loan was granted and the alleged failure of Exalogic to make proper repayments. Veena T, daughter of Opposition Leader Pinarayi Vijayan owned Exalogic Solutions.
The questioning follows the ED's interrogation of Sasidharan Kartha's daughter, Shiby S Kartha, on Monday. Shiby is a director of CMRL and also serves as a director of Nipuna International, a sister concern of CMRL that has been named among the accused entities in the case.
Meanwhile, the ED has directed Veena to appear for questioning on Wednesday. Veena had earlier been summoned to appear on June 12 but sought additional time reportedly citing health concerns. She had also informed the agency that the documents sought by investigators could be submitted through her advocate.
The ED later issued a fresh notice requiring her personal appearance on June 17. During earlier searches conducted at premises linked to Veena, officials seized several documents and recorded her preliminary statement. Sources indicate that the questioning will focus on the documents seized during the raids and statements obtained from individuals associated with CMRL.
According to the ED, a key finding in the case is that Exalogic Solutions allegedly received ₹2.78 crore from CMRL without providing any IT consultancy services in return. The allegation forms a crucial part of the broader investigation into financial transactions involving the company.
The case stems from findings by the Serious Fraud Investigation Office (SFIO), which alleged that CMRL had shown nearly ₹182 crore as fictitious expenditure over a period of 15 years. Investigators suspect that the amount was diverted to various individuals and entities through questionable transactions bypassing corporate regulations.
Following the Kerala High Court's approval for the ED to proceed with its probe, a special court transferred financial transaction records collected by the SFIO to the central agency. The current phase of questioning is being conducted on the basis of those records, SFIO report and the evidence gathered so far.
During previous enforcement actions related to the case, the ED had frozen ₹18.36 crore held across 242 bank accounts as part of its investigation into the alleged financial irregularities.