Kochi: Enforcement Directorate (ED) has widened its investigation into the alleged CMRL-Exalogic ‘masappadi’ (monthly payment) case to examine whether Cochin Minerals and Rutile Ltd. received undue favours from the erstwhile LDF government, even as it subjected T. Veena, daughter of former Chief Minister Pinarayi Vijayan, to more than 10 hours of questioning in Kochi a day earlier.
The agency is learnt to be examining whether the monthly payments allegedly made by CMRL to Veena’s IT firm, Exalogic Solutions, were linked to benefits or concessions extended to the company by the state government during the first Pinarayi Vijayan administration.
Investigators reportedly suspect irregularities in the consultancy agreement between Exalogic and CMRL and are probing whether it formed part of a larger quid pro quo arrangement.
Veena, who appeared before the ED for a second round of questioning Thursday after being issued a fresh summons following the Kerala High Court’s nod for further investigation, arrived at the agency’s Kochi office around 9.30 a.m., accompanied by her husband, Kerala Minister P.A. Mohammed Riyas.
She was questioned for over 10 hours and is likely to be summoned again.
The latest interrogation came after the ED secured 134 annexures to the Serious Fraud Investigation Office (SFIO) charge sheet from the Company Court in Kochi.
CMRL’s objections to handing over the documents were rejected by the court, enabling investigators to rely on the records during questioning.
Sources said ED officials sought clarifications not only on Exalogic’s financial dealings with CMRL but also on allegations that the company received favours from the then state government while Pinarayi Vijayan was Chief Minister.
Veena is understood to have maintained that there was nothing irregular about the contract awarded to Exalogic, but the agency has yet to accept her explanation.
The case stems from findings of the Income Tax Settlement Commission that CMRL paid Rs 1.72 crore to Exalogic between 2017 and 2020 as consultancy charges despite allegedly receiving no corresponding IT services.
Based on these findings, the SFIO initiated an investigation into the transactions, following which the ED registered a money laundering case under the Prevention of Money Laundering Act (PMLA).
During the first round of questioning, Veena was asked to explain the services rendered by Exalogic and produce supporting documents.
The ED had also inspected her HDFC Bank locker as part of the probe.
With the questioning of CMRL officials already completed, the agency is now expected to intensify its investigation into the financial trail and the alleged links between the payments and decisions taken by the then state government.
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