ED raids won’t make me cut old ties; BJP playing dangerous politics: Mohammed Riyas

Kozhikode: Former Kerala minister and CPM leader P A Mohammed Riyas on Wednesday said the Directorate of Enforcement (ED) raids targeting people associated with him would not affect his relationships with them, asserting that he was prepared to face the investigation both politically and legally.

“The people raided by the ED are respectable people living in Kozhikode. They have been my acquaintances since my college days. They did not connect with me after I became an MLA. As a legislator, I have ties with many people. Just because the ED raided a few people, my ties with them will not end,” Riyas said.

He said the CPM had decided to respond to the ED action politically and accused the BJP of pursuing “dangerous politics”.

“We have decided to face this politically. This is the party's decision. This is the BJP's dangerous politics. We will not run away because of this. Some people who contested under the hand symbol later joined the BJP. We will not run away in fear,” he said.

Riyas said he was also prepared to face the investigation through legal means.
“There is a lot of news coming out. We will face it legally. We are ready to face any investigation,” he said.

Responding to allegations concerning financial transactions involving his wife and former Chief Minister Pinarayi Vijayan’s daughter, T Veena, Riyas said all transactions had been carried out through bank accounts and taxes had been paid.

“Any financial transaction that has taken place has been through the bank account. The taxes have also been submitted,” he said.

Riyas also accused the Centre of attempting to malign Veena because she is the daughter of a political leader.

“This is an attempt to malign my wife just because she is the daughter of a political leader. She is an educated woman with a BTech degree. Why can't she pursue business? She is an individual who can make decisions in her capacity. As a husband, I always advise her to pursue whatever business she can in her capacity,” he said.

Riyas said details of the firms associated with Veena had been disclosed in his election affidavit. According to his affidavit filed ahead of the Assembly election, Riyas had listed KIAL Unlisted, with an investment of ₹5 lakh; Exalogic, with an investment of ₹1 lakh; and Laker India Corp, with an investment of ₹10,94,742, in Veena's name.

Riyas's remarks came a day after the ED conducted searches at eight locations in and around Kozhikode as part of its investigation into the CMRL-Exalogic case. The searches targeted properties linked to people associated with Riyas, including CPM district secretariat member P Nikhil and his close associate N Nandulal.

An ED team searched Nandulal's residence at East Hill in Kozhikode. Nandulal, a Destination Coordinator with the Kozhikode District Tourism Promotion Council, is reportedly a close associate of Riyas and also serves as the DYFI East Hill area secretary.

The agency also searched properties linked to Nikhil, including his ancestral house at Karuvanthuruthy in Feroke and a flat in Ashokapuram. Nikhil, who was undergoing treatment at a hospital, was brought to the flat before the search.

The ED also searched Laker India Corp, a Kozhikode-based company. The agency had earlier frozen investments worth ₹16.5 lakh held in Veena's name in connection with the case.

The latest searches reportedly stem from information recovered from a diary seized during an ED search at Veena's rented residence in Thiruvananthapuram on May 27. According to documents recovered during the search, Veena's account had a balance of ₹1,37,088, while Exalogic's account had ₹27,585 and Laker India Corp's account had ₹15,57,414.

The CMRL-Exalogic case originated from a Serious Fraud Investigation Office (SFIO) probe, which alleged that Cochin Minerals and Rutile Ltd (CMRL) had recorded nearly ₹182 crore as fictitious expenditure over 15 years. Investigators suspect that the money was diverted to various individuals and entities through questionable transactions.

The Kerala High Court had allowed the ED to proceed with its investigation, following which a special court transferred financial transaction records collected by the SFIO to the central agency. The ED is pursuing the probe based on the SFIO report, the records handed over by the court and other evidence gathered during the investigation.