CMRL-Exalogic case: ED moves court seeking SFIO documents

Kochi: Enforcement Directorate (ED) has further intensified action in the CMRL-Exalogic case, with the central agency filing a petition before a special court in Kochi for considering cases under the Prevention of Money Laundering Act, seeking the records of Serious Fraud Investigation Office (SFIO) which investigated the dealings.

An official said the petition was filed on Saturday, seeking copies of the entire 57 volumes of documents that SFIO compiled following its investigation.

According to ED, the Income Tax Department carried out a search at Cochin Minerals and Rutile Ltd (CMRL) in Jan 2019, during which certain fake expenses to the extent of about Rs 130 crore were allegedly identified. CMRL also admitted the fake expenses before the Income Tax Settlement Commission (ITSC). In its order, ITSC has given a finding of various bribes by CMRL to various persons and the admissions made by CMRL personnel, ED says.

A complaint was made before SFIO based on the Income Tax Department’s findings and SFIO investigations as directed by corporate affairs ministry. Accordingly, SFIO started investigations.

Further, ED initiated a probe under PMLA based on the SFIO-initiated investigations. The SFIO filed prosecution complaint on April 3, 2025, for corporate fraud against Sasidharan Kartha and 12 others before the additional sessions court-VII, Ernakulam.

According to an ED statement, SFIO investigations also revealed fictitious cash expenses of Rs 182 crore over a span of 15 years (which was used for bribing various persons).

“One of the fake expenses booked by CMRL is towards the payment to Veena, daughter of Pinarayi Vijayan, ex-chief minister of Kerala. The company of Veena, M/s Exalogic Solutions Pvt Ltd (a one-person company), received fraudulent payments totalling Rs 2.78 crore from CMRL under the guise of IT consultancy services. Further, Empower India Capital Investment Pvt Ltd (EICPL), operated by Sasidharan Kartha, MD of CMRL, extended loans to Exalogic totalling Rs 50 lakh, despite Exalogic failing to make timely repayments,” ED said in a statement.

The investigations by ED showed that proceeds of crime were generated by CMRL management led by Kartha and bribes were paid to various persons. Veena is a recipient of money from CMRL without rendering any services, ED found. On May 27, ED held simultaneous raids across Kerala and during the search several incriminating records, details of accounts, digital evidence, investments and bank FD were found.