The Enforcement Directorate (ED) has intensified its investigation into the Cochin Minerals and Rutile Limited (CMRL) monthly payment case by conducting extensive raids on Wednesday, May 27. The central agency targeted 10 locations across Kerala, including the residences of former Chief Minister and current Leader of the Opposition, Pinarayi Vijayan. The search operations were carried out at Vijayan's rented accommodation in Thiruvananthapuram and his permanent residence in Kannur. This significant move marks a major escalation in the ongoing money laundering probe that has gripped the state's political landscape.
Scope of the Search Operations
The ED officials didn't limit their action to the former Chief Minister's properties. The search operation extended to the offices associated with the case and the residences of other key figures. Among those targeted was Sasidharan Kartha, the Managing Director of CMRL, whose residence was thoroughly searched. On top of that, the probe reached the Kozhikode residence of former minister Mohammed Riyas. According to official statements, these searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), focusing on gathering evidence related to suspicious financial transactions and potential money laundering activities.
Legal Context and High Court Ruling
The ED's action follows a crucial decision by the Kerala High Court, which granted the agency permission to proceed with its investigation. A single bench of the High Court recently dismissed several petitions filed by CMRL employees and officials who sought to halt the probe. The petitioners included CMRL Managing Director Sasidharan Kartha, Chief Financial Officer KS Suresh Kumar, Anju Rachel, and Chandrasekharan. They had alleged harassment under the guise of interrogation and argued that there was no evidence to justify an ED investigation. However, the court rejected these claims and also denied a request for a one-week extension to appeal the decision, thereby clearing the path for the ED's current operations.
Allegations and SFIO Findings
The roots of the ED's investigation lie in the findings of the Serious Fraud Investigation Office (SFIO). The SFIO probe revealed that a company owned by Veena Vijayan, the daughter of Pinarayi Vijayan, allegedly received payments amounting to millions of rupees for services that were never actually provided. These findings suggested a broader scheme of bribery and money laundering involving CMRL. The controversy gained momentum after the Income Tax Department's Interim Board for Settlement raised questions about the legitimacy of these transactions, noting that they couldn't be classified as valid business expenses.
Timeline of the Investigation
The investigation has seen several key developments over the past year. In January 2024, the Ministry of Corporate Affairs ordered an SFIO probe following the Income Tax Department's findings. Subsequently, in April 2024, the ED issued summons to CMRL officials, prompting the company to seek legal intervention. During the court proceedings, the ED argued that under the PMLA, it has the authority to take action even without a formal FIR. The agency also pointed out that the SFIO had already filed a complaint regarding the matter in April 2025. As the raids continue, the ED aims to uncover the full extent of the financial irregularities and the involvement of high-profile individuals in the CMRL monthly payment case.