Veena T, daughter of former Kerala Chief Minister and present Leader of Opposition in the Assembly Pinarayi Vijayan, appeared before the Enforcement Directorate (ED) office in Kochi on Wednesday for questioning in connection with the alleged monthly payoff case. On her way to the investigating agency’s office, she was accompanied by her husband and former minister PA Mohammed Riyas, amid tight security arrangements.
This marks the second summons issued by the ED. Veena had earlier sought a two-week extension citing health concerns after the first notice but was granted only a five-day reprieve and directed to appear in person.
Despite submitting documents, including contracts between her IT firm Exalogic and Cochin Minerals and Rutile Limited (CMRL), through her lawyer, the agency insisted on her physical presence. Authorities arranged a special security corridor to ensure her smooth entry into the premises.
Notably, unlike previous such instances in Kerala, there was no visible presence of CPI(M) workers or leaders outside the ED office. The situation in Kochi remained calm, in contrast to the usual scenes witnessed in Thiruvananthapuram and Kannur during high-profile investigations.
The ED is focusing on key aspects of the case, particularly the nature of IT services allegedly provided by Exalogic to CMRL. Investigators are probing claims that a total of Rs 2.78 crore was received at a rate of Rs 5 lakh per month under the pretext of such services.
The probe aligns with findings by the Serious Fraud Investigation Office (SFIO), which indicated a lack of evidence of actual services rendered. Financial transactions between Exalogic and CMRL reportedly began in 2016-17, with agreements signed in 2016 and 2017, followed by a principal contract covering the period from 2017 to 2021. The agreements stipulated payments of Rs 3 lakh to Exalogic and Rs 5 lakh to Veena personally, amounting to Rs 96 lakh annually.
The ED is also examining a subcontract worth around Rs 50 lakh awarded to Veena, along with related financial transactions. Officials indicated that if any assets are found to have been acquired using these funds, action could be initiated under the Prevention of Money Laundering Act (PMLA), including attachment of properties.
In recent days, the ED has questioned key officials associated with CMRL, including members of the Kartha family. Statements provided by them are expected to be cross-verified with Veena’s responses.
Earlier findings by the Income Tax Department’s Interim Settlement Board suggested that CMRL engaged in black money transactions worth Rs 1.72 crore, from which funds were allegedly routed to Veena and others. The ED is also examining a loan transaction involving Empower India Private Limited, a company linked to the Kartha family, from which Veena had borrowed and later repaid funds.
The SFIO had also summoned Veena earlier this month in Chennai as part of a parallel investigation under the Companies Act. Following a court directive, the ED has received over 100 documents from the SFIO to aid its probe.
Attempts by CMRL to halt the investigation were dismissed by both a Single Bench and a Division Bench of the High Court, which observed that the probe had prima facie merit.
The ED had earlier conducted searches at multiple locations, including residences linked to Vijayan and Veena. Three bank accounts belonging to Veena remain frozen as part of the investigation.
Officials indicated that the outcome of the current interrogation will play a crucial role in determining the next steps in the ongoing probe.
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