CMRL Pay-Off Case: ED Questions MD’s Daughter
Financial documents and ledgers on a wooden desk
Key Highlights
ED questions CMRL MD’s daughter in a money-laundering probe linked to alleged payments to a firm associated with Pinarayi Vijayan’s daughter.
The Directorate of Enforcement (ED) has questioned Shiby S. Kartha, daughter of Cochin Minerals and Rutile Ltd (CMRL) managing director Sasidharan S. Kartha, in a money-laundering case. This development is part of a broader probe into alleged payments made by CMRL to a firm linked to former Kerala Chief Minister Pinarayi Vijayan’s daughter.
Key Allegations and Financial Links
- Ms. Kartha, a director in a company associated with CMRL, was questioned regarding alleged fictitious expenses. She has been instructed to submit relevant financial documents to the ED.
- The core of the investigation involves alleged payments made by CMRL to Exalogic Solutions Private Limited, a now-defunct firm.
- Exalogic Solutions was owned by Veena T., daughter of former Kerala Chief Minister Pinarayi Vijayan. These payments were allegedly made without any services being received.
- Another company, Empower India Capital Investments Private Limited (EICPL), operated by Mr. Kartha, reportedly extended loans worth ₹50 lakh to Exalogic, despite the latter’s reported failure to make timely repayments.
The Broader Money Laundering Probe
The ED’s investigation has intensified, with previous actions including raids on Mr. Vijayan’s residences. Authorities have also frozen ₹18.36 crore across 242 accounts linked to the case.
The money-laundering case was officially registered under the Prevention of Money Laundering Act (PMLA). This action was initiated based on a complaint received from the Serious Fraud Investigation Office (SFIO).