Kerala CM Satheesan Defends CMRL–Exalogic Inquiry Into Vijayan Family

Kerala Chief Minister V.D. Satheesan on Wednesday defended his government’s decision to order a preliminary police inquiry into allegations against former Chief Minister and CPI(M) leader Pinarayi Vijayan, his daughter T Veena and son-in-law P.A. Mohammed Riyas in the CMRL–Exalogic case, saying the move followed legal advice and Supreme Court judgments and was not intended to target anyone.

The decision followed an Enforcement Directorate (ED) report sent to Kerala Police under Section 66(2) of the Prevention of Money Laundering Act (PMLA), seeking action under the Prevention of Corruption Act. Instead of immediately registering an FIR, the government ordered a preliminary inquiry by a Crime Branch Special Investigation Team (SIT). Satheesan said the government had obtained opinions from the Advocate General and Director General of Prosecution before acting.

The controversy dates back to a 2019 Income Tax search at Cochin Minerals and Rutile Ltd (CMRL), which examined alleged irregularities in the company's payments. Among the transactions scrutinised was around ₹1.72 crore paid to Exalogic Solutions, a company associated with Veena, with investigators questioning whether corresponding services were actually provided.

The matter expanded in 2024 when the Ministry of Corporate Affairs ordered an investigation by the Serious Fraud Investigation Office (SFIO). The agency filed a prosecution complaint in April 2025 against 12 individuals, including Veena, alleging corporate fraud and related offences. The subsequent ED investigation examined whether transactions identified during earlier probes constituted proceeds of crime under the PMLA.

According to the ED's latest report, CMRL allegedly paid about ₹2.78 crore to Veena and Exalogic without corresponding services. The agency has separately alleged that ₹3.28 crore was paid as illegal gratification to Vijayan through Veena, while also raising allegations concerning hawala transactions involving Riyas. These remain allegations and have not been established as criminal liability by a court.

The evidentiary record has also become contested. Two CMRL officials reportedly retracted earlier statements, alleging they were obtained under pressure and intimidation. The ED has rejected such allegations.

The Kerala High Court in June 2026 allowed the ED's PMLA investigation to continue after dismissing CMRL's challenge. The court also considered the wider background, including allegations of approximately ₹182 crore in fictitious cash expenses over 15 years.

Satheesan cited the Supreme Court's Lalita Kumari judgment and Section 66(2) of the PMLA to justify the preliminary inquiry. He rejected the CPI(M)'s charge of political vendetta, while the party accused the Congress-led government of working with the Narendra Modi-led Centre to target the Left.

The Crime Branch SIT will now assess the ED's material and determine whether an FIR or further proceedings are warranted. The inquiry itself does not establish guilt, leaving the next legal course dependent on the evidence examined by investigators.