New Delhi, May 27: The Enforcement Directorate (ED) carried out raids on approximately ten locations linked to Cochin Minerals and Rutile Limited on Wednesday. This action follows the Kerala High Court‘s decision to uphold the ED’s investigation into an alleged money laundering case involving the company.
During the raids, the ED seized documents related to investments and bank fixed deposits. According to officials, these documents are currently being examined under the Prevention of Money Laundering Act (PMLA).
The ED’s operations targeted the premises of senior officials at CMRL and Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan.
Officials stated that searches were conducted at the premises associated with the company’s Managing Director S.N. Shashidharan, Joint Managing Director Saran S. Kartha, and Veena Vijayan’s IT company, Exalogic Solutions Private Limited, in Kannur, Ernakulam, Thiruvananthapuram, and Bengaluru.
Sources indicated that Veena Vijayan was present at a residence in Thiruvananthapuram with her father during the raids.
This case is linked to a raid conducted by the Income Tax Department on CMRL in January 2019, which revealed alleged fraudulent expenses amounting to around ₹130 crores recorded in the company’s accounts. Subsequently, the company acknowledged these irregularities before the Income Tax Settlement Commission.
Following this, the Serious Fraud Investigation Office (SFIO) initiated an inquiry under the directives of the Ministry of Corporate Affairs.
On April 3, 2025, the SFIO filed a prosecution complaint against Saran Kartha and 12 others in the Additional Sessions Court-7 in Ernakulam regarding the alleged corporate fraud case.
Investigating agencies allege that approximately ₹182 crores in fake cash expenses were reported over 15 years. Additionally, CMRL allegedly paid around ₹91 crores to companies linked to the Kartha family under the guise of transportation services.
The SFIO also claimed that Veena Vijayan’s company, Exalogic Solutions Private Limited, received ₹2.78 crores from CMRL for IT consultancy services.
On May 26, 2026, the Kerala High Court dismissed CMRL’s petition challenging the ED’s investigation. The court stated that establishing a predicate offense is not mandatory in the initial stages of a PMLA investigation, and the SFIO’s complaint now falls under the category of scheduled offenses as per the Act.
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