On Tuesday, June 9, the Enforcement Directorate issued summons to T Veena, daughter Kerala’s Leader of Opposition and former chief minister Pinarayi Vijayan. Veena has been asked to appear for questioning at the agency’s zonal office on Friday, June 12, according to reports.
The summons came a day after Veena was ordered to transfer documents related to financial transactions between her now defunct firm Exalogic and Cochin Minerals and Luterite Limited (CMRL).
On June 5, a division bench of the Kerala High Court had rejected an appeal filed by CMRL seeking to quash the ED case against it. Earlier on May 27, the ED had raided 12 locations linked to Pinarayi, Veena, and CMRL.
Alongside Veena, summons have been served on eight officials of CMRL, including its chairman and managing director Sasidharan Kartha.
In parallel developments, the ED has begun steps to proceed with the potential confiscation of Rs 18.36 crore lying in 242 frozen bank accounts. One of these accounts is linked to Veena Vijayan. Funds in other accounts, including those held with HDFC Bank, may also come under the scope of seizure proceedings, subject to approval from the Adjudicating Authority in the coming days.
The agency is also examining electronic evidence and banking records seized during recent raids. Prior to the scheduled questioning, the ED is considering inspection of Veena Vijayan’s bank lockers as part of its preparatory steps.
On June 8, a special Prevention of Money Laundering Act (PMLA) court in Kochi ordered the transfer of crucial documents to the ED. The court directed that certified copies of 134 key documents seized by the Serious Fraud Investigation Office (SFIO) be handed over to the ED, which is probing alleged financial irregularities linked to payments made by the CMRL to Veena’s now defunct company Exalogic.
The documents include the Income Tax returns of the companies involved, the agreement signed between CMRL and Veena in 2016, the 2017 agreement between CMRL and Exalogic, and details of services provided by Exalogic to CMRL.
Records relating to a loan provided by Empower India Capital, a CMRL-linked company, to Veena’s firm, along with repayment details, are also part of the documents to be handed over.
The court rejected the CMRL’s objections to sharing the records with the ED. The documents will be transferred through the court as part of the annexures to the SFIO charge sheet. The SFIO has been directed to produce the records before the court within 10 days.
The ED had approached the court seeking access to what it termed crucial evidence gathered by the SFIO during its investigation. The agency sought transaction details, agreements, and tax-related records before proceeding with further steps, including possible questioning of Veena.
The court had earlier sought the SFIO’s stand on the request, and the agency supported providing the documents to the ED.
The case had emerged after allegations that Exalogic received payments from CMRL despite no clear evidence of corresponding services.
The matter triggered a major political controversy in Kerala, with opposition parties demanding a detailed probe into the transactions.
With IANS inputs.