Kochi: Veena Vijayan, daughter of former Kerala chief minister Pinarayi Vijayan, has been summoned by the Enforcement Directorate (ED) for questioning in connection with its ongoing money laundering investigation linked to Cochin Minerals and Rutile Limited (CMRL).
Veena has been directed to appear before the central agency at its Kochi zonal office on June 12, officials said, as reported by The Indian Express.
The ED wants to record her statement under provisions of the Prevention of Money Laundering Act (PMLA). Several other individuals connected to the case have also been summoned as part of the widening investigation, sources indicated.
The agency is investigating alleged financial transactions between Kerala-based mineral sands company CMRL and Exalogic Solutions Pvt Ltd, a now-defunct IT firm owned by Veena.
CMRL allegedly made payments amounting to Rs 2.78 crore to Exalogic for IT consultancy services. The agency is now examining whether these payments were genuine business transactions or constituted proceeds of crime generated through fraudulent arrangements.
ED officials conducted searches
at multiple locations linked to the case, including premises associated with Veena in Thiruvananthapuram, last month.
The Serious Fraud Investigation Office (SFIO) had earlier examined the financial relationship between Exalogic and CMRL. The ongoing money laundering investigation draws heavily from its findings.
Exalogic, whose primary business involved educational management software, was engaged as an IT consultant by CMRL and reportedly received a monthly consultancy fee of Rs 8 lakh, the SFIO report filed before a court in Ernakulam stated.
Investigators have questioned the nature of the services provided, alleging there was little evidence of actual consultancy work being carried out.
Financial transactions involving another company, Empower India Capital Investment Private Limited (EICPL), operated by CMRL managing director Sasidharan Kartha, have also been shown in the report.
It has been alleged by the ED that EICPL extended loans worth Rs 50 lakh to Exalogic despite delays in repayment of earlier borrowings, raising questions about the commercial rationale behind the transactions.
The management of CMRL, led by Kartha, and Veena Vijayan generated “proceeds of crime” through the disputed financial arrangements, it has been alleged by the ED. Investigators are examining whether the payments and loans were part of a broader scheme to divert funds under the cover of consultancy contracts.
ED director Rahul Naveen was in Kerala recently to review the progress of the investigation.
Veena has denied all allegations though. In a counter-affidavit filed before the court, she maintained that all transactions between Exalogic and CMRL were lawful, transparent and carried out in accordance with established business practices.