ED Raids Pinarayi Vijayan’s Residence in Expanding CMRL-Exalogic Money Trail Probe

The Enforcement Directorate’s (ED) searches at the residence of former Kerala chief minister Pinarayi Vijayan have intensified the political storm surrounding the controversial CMRL-Exalogic financial transactions case , an investigation that agencies believe could involve far more than the alleged Rs 1.72 crore payment at the centre of the probe.

The ED on Wednesday raided 10 locations across Kerala under the provisions of the Prevention of Money Laundering Act (PMLA) , including Vijayan’s rented residence in Thiruvananthapuram, a location in Kannur, and premises linked to Cochin Minerals and Rutile Ltd (CMRL) and its associated individuals. The searches are tied to allegations that CMRL transferred nearly Rs 1.72 crore to Exalogic Solutions , an IT company owned by Vijayan’s daughter T Veena , between 2017 and 2020 despite allegedly receiving no consultancy or software support services in return.

The raids came a day after the Kerala High Court dismissed CMRL’s plea seeking to quash the ED investigation, allowing the agency to continue its money laundering probe registered in 2024.

While the amount under scrutiny is relatively small compared to major corruption investigations, investigators suspect the issue may involve a broader pattern of influence-based payments disguised as consultancy fees. According to findings cited by the Serious Fraud Investigation Office (SFIO) and Income Tax authorities, the key concern is why a private company allegedly continued making monthly payments if no actual services were rendered.

The case first emerged after the Income Tax Department’s interim settlement board questioned the legitimacy of financial transactions involving CMRL. The SFIO later launched a corporate fraud investigation, which eventually formed the basis of the ED’s money laundering case.

The controversy has become politically damaging for Vijayan, with opposition parties accusing the former chief minister of allowing a “payoff mechanism” linked to political influence. Vijayan, however, has consistently denied all allegations, calling them politically motivated attempts to tarnish his image and target his family.

The ED action also triggered protests by CPI(M) workers in Kerala. Tensions escalated outside Vijayan’s residence after party workers allegedly attacked a vehicle carrying ED officials during the searches, leading to multiple arrests.

The raids come shortly after Vijayan’s defeat in the Kerala Assembly elections, where the Congress-led UDF unseated the CPI(M)-led government after two consecutive terms in power.