In a significant escalation of tensions in Kerala, a team of Enforcement Directorate (ED) officials came under attack from supporters of the Communist Party of India (Marxist) during a series of raids, while the incident occurred at Bakery Junction in Thiruvananthapuram district, right in front of the residence of former Chief Minister Pinarayi Vijayan. Protesters targeted the central agency's vehicles with bricks and stones, resulting in the shattering of window panes. The situation led to a violent confrontation between the police and CPIM workers, as the latter attempted to obstruct the officials from performing their duties.
Context of the Raids and Locations
The Enforcement Directorate's action is part of an ongoing investigation into a money laundering case involving Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions. The search operations were conducted across approximately 10 locations, including Kannur, Ernakulam, Thiruvananthapuram, and Bengaluru. The raids specifically targeted the residences of former Chief Minister Pinarayi Vijayan and former Minister and current MLA Mohammed Riyas. In Kozhikode's Kottuli area, similar clashes were reported between the police and CPM workers at the residence of Mohammed Riyas, which were eventually brought under control after the intervention of political leaders.
Financial Irregularities in the CMRL Case
The roots of this case trace back to 2019 when the Income Tax Department conducted raids on CMRL, uncovering alleged fake expenses amounting to 130 crore rupees. The investigation was subsequently handed over to the Serious Fraud Investigation Office (SFIO). The SFIO's probe revealed even more extensive irregularities, claiming that the company had recorded approximately 182 crore rupees in fictitious cash expenses over the past 15 years. N. Sasidharan Kartha, and his son, Saran Kartha, received payments totaling 30 crore 63 lakh rupees as salary and other remunerations between 2015-16 and 2022-23, despite the company failing to issue dividends to its shareholders.
Allegations Against Veena Vijayan and Exalogic
A major focus of the ED's investigation is Exalogic Solutions Private Limited, a firm owned by Veena Vijayan, the daughter of Pinarayi Vijayan. According to the ED, CMRL paid approximately 2 crore 78 lakh rupees to Exalogic under the guise of IT consultancy services. On top of that, the investigation revealed that another entity linked to CMRL had extended a loan of 50 lakh rupees to Exalogic. The agency is scrutinizing these transactions to determine if they were part of a larger money laundering scheme involving shell companies and fabricated expenses.
Legal Proceedings and Current Status
CMRL had previously challenged the legality of the ED's investigation in the Kerala High Court, arguing that the agency couldn't proceed without a predicate offense. However, on May 26 2026, the Kerala High Court dismissed the company's petition, ruling that the ED's probe was consistent with legal provisions. Following this judicial clearance, the ED intensified its search operations. The search at the residence where Veena Vijayan was staying lasted for about 8 hours. Officials noted that former CM Pinarayi Vijayan was also present at the location during the raid. During the operation, the ED seized several documents related to investments and bank fixed deposits, which are currently being analyzed to trace the flow of funds.