The Enforcement Directorate conducted searches at eight locations in Kozhikode, Kerala, on August 18, 2026, targeting suspected financial irregularities.
The investigation involves Cochin Minerals and Rutile Limited and Exalogic Solutions, a firm owned by T. Veena, daughter of former Chief Minister Pinarayi Vijayan.
The Kerala High Court validated the money laundering probe, ruling that inquiries under the PMLA remain valid even without a predicate offence.
The Enforcement Directorate searched eight locations in Kozhikode, Keralam, on Tuesday (August 18, 2026). The federal agency is investigating suspected financial irregularities involving Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions. The latter is a defunct enterprise owned by T. Veena, daughter of former Chief Minister Pinarayi Vijayan.
Tuesday's action follows earlier sweeps executed on May 27, 2026. Those raids covered Vijayan's then rented house at Bakery Junction in Thiruvananthapuram, his ancestral home in Kannur and the residence of P.A. Mohammed Riyas, Veena's husband and former Public Works Minister.
The investigative agency previously froze Rs 18.36 crore spread across 242 bank accounts. Officials identified these suspect accounts during the May 27 search operations.
Court Validates PMLA Probe
Legal proceedings gained momentum when the Kerala High Court dismissed a writ petition filed by CMRL on May 26, 2026. The bench ruled that inquiries initiated under the Prevention of Money Laundering Act (PMLA) remain valid even without a predicate offence.
The court stated that a predicate offence already existed. The Serious Fraud Investigation Office (SFIO) had previously filed a prosecution complaint containing a scheduled PMLA offence. The SFIO under the Union Ministry of Corporate Affairs and the ED began separate inquiries after CMRL admitted fake expenses to the Income Tax Settlement Commission.
Consequently, the SFIO filed a corporate fraud prosecution complaint against CMRL chairman and managing director Sasidharan Kartha and 12 others before the Additional Sessions Court – VII in Ernakulam.
Scale Of Corporate Fraud
The alleged financial misconduct spans over a decade. Kartha and his son collected Rs 30.63 crore in remuneration between 2015-16 and 2022-23, the SFIO stated. The mining firm paid these amounts despite issuing zero dividends to shareholders.
Investigators detected Rs 182 crore in purported fake cash expenses over a 15-year period. The company also directed Rs 91 crore for transport services to entities controlled by the Kartha family.
Exalogic Solutions, operating as a one-person enterprise under Veena, allegedly obtained Rs 2.78 crore from CMRL. The firm masked these fraudulent transfers as IT consultancy fees. Kartha's Empower India Capital Investment Private Limited (EICPL) also issued loans worth Rs 50 lakh to Exalogic despite consecutive repayment defaults.
