CMRL payoff case: ED interrogation of Veena ends after 8 hrs

Kochi: The Enforcement Directorate (ED), which is probing the suspicious financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Pvt Ltd under the Prevention of Money Laundering Act (PMLA), on Wednesday questioned Veena T, owner of the now-defunct IT firm and daughter of Opposition Leader Pinarayi Vijayan, for more than eight hours. Veena walked out of the ED zonal office at Kadavanthra and left in her car around 8 pm.

Veena appeared before the ED at around 10.15 am. She was accompanied by her husband and Beypore MLA P A Mohammed Riyas. However, he did not get out of the car, which stopped at the security gate of the ED office. Neither Riyas nor Veena spoke to the media before or after the interrogation.

The questioning came days after Veena failed to appear before the agency on June 12, citing health issues and seeking permission for her lawyer to submit documents on her behalf. The ED rejected the request and issued a fresh summons directing her to appear in person.

It is learnt that the investigators questioned Veena based on digital evidence gathered during earlier searches and documents contained in the 57-volume prosecution complaint filed by the Serious Fraud Investigation Office (SFIO).

The ED's interrogation focused on the ₹2.78 crore received by Exalogic from CMRL as “IT and Marketing Consultancy” charges between 2017 and 2020. Investigators sought explanations and supporting documents regarding the services allegedly provided by Exalogic, as the SFIO has concluded that no software or consultancy services were actually rendered.

The ED also probes into a ₹50 lakh loan received by Exalogic from Empower India Capital Investments Private Limited (EICPL), a company in which Jaya S Kartha, wife of CMRL Managing Director S N Sasidharan Kartha, serves as a director. The agency is examining whether funds paid by CMRL were diverted through related entities to settle private liabilities.

The questioning followed the ED's recent examination of Jaya Kartha, CMRL Joint Managing Director Saran S Kartha and company director Shiby S Kartha. Investigators are cross-verifying statements and financial records as part of the wider probe. Once Veena’s statements are verified and cross-checked with others’, the ED will decide on whether she has to be summoned again for questioning.

The ED is investigating alleged financial irregularities linked to a purported ₹182-crore fake expenditure network uncovered by the SFIO. The agency has already frozen ₹18.36 crore in 242 bank accounts linked to the case and is tracing the alleged proceeds of crime.