Kochi: The Enforcement Directorate has sought the attachment of properties linked to T. Veena in the CMRL money-laundering case, citing a crucial statement by company founder and former Managing Director S.N. Sasidharan Kartha that payments to her and her firm Exalogic Solutions were made solely because of her personal relationship with then Chief Minister Pinarayi Vijayan.
In a report filed before the PMLA Adjudicating Authority, the ED has placed on record Kartha’s statement recorded under Section 50 of the Prevention of Money Laundering Act on April 17, 2024. According to the agency, Kartha admitted that CMRL paid ₹2.78 crore to Veena and Exalogic without receiving any genuine IT or consultancy services, citing the “personal relationship” with her father, the then Kerala Chief Minister.
The ED contends that the payments, made under the guise of Enterprise Resource Planning implementation and IT consultancy, were sham transactions. Investigators say Veena could not produce any evidence of software, reports or other deliverables provided to CMRL. Exalogic itself had a negative net worth of ₹66 lakh and a standalone turnover of just ₹5 lakh, making it almost entirely dependent on the CMRL funds. The agency has also flagged a ₹50 lakh loan extended to Exalogic by Empower India Capital Investments, an NBFC controlled by Kartha.
These transactions form part of a much larger alleged diversion of nearly ₹182 crore from CMRL over 15 years. At the heart of the scandal is the massive sludge-handling racket. The ED claims ₹139 crore was siphoned off by booking fictitious expenses under “Sludge Handling and Transportation” using self-generated vouchers without supporting invoices or actual services. Another ₹43 crore was allegedly diverted through inflated vendor invoices, with the excess cash withdrawn and returned to company officials after deducting commissions, creating a circular flow of funds back to insiders.
The agency has already frozen assets worth about ₹29 crore belonging to 12 accused individuals and entities, including accounts linked to Veena. It is now seeking confirmation of attachment before the Adjudicating Authority, a step that could lead to eventual confiscation under the PMLA.
Responding to the development, Pinarayi Vijayan strongly rejected the reported contents of Kartha’s statement. The Leader of the Opposition dismissed it as “media creativity” and questioned both its source and authenticity. “Who released this statement? What’s its authenticity? Media creates such reports… They (ED) are trying to somehow connect me to this false case,” Vijayan said, alleging that the move was part of an attempt to drag him into the investigation.
Veena has been questioned multiple times by the ED, and her bank locker was inspected as part of the probe. The Adjudicating Authority is expected to issue notices to the accused before deciding on the attachments. The case, originating from Income Tax findings and an SFIO complaint, continues to keep the political temperature high in Kerala.
