CMRL-Exalogic case: VACB files 2 FIRs against Pinarayi, daughter, son-in-law
FIRs come after HC rules out state govt’s proposition of SIT inquiry, says ED evidence enough to register cases under Prevention of Corruption Act
The Vigilance and Anti-Corruption Bureau (VACB) has registered two separate FIRs in the controversial CMRL-Exalogic case, naming CPI(M) leader and former chief minister Pinarayi Vijayan and former minister PA Mohammed Riyas as the first accused in separate cases. Pinarayi's daughter T Veena has also been named as an accused.
The move marks a significant escalation in the corruption allegations surrounding payments made by Cochin Minerals and Rutile Ltd (CMRL) to Exalogic Solutions, a company owned by T Veena.
The registration of the FIRs shifts the matter from a preliminary examination of the allegations to a formal investigation by the state’s anti-corruption agency.
FIRs filed on HC orders
The FIRs, filed on Monday (October 12), follow a Kerala High Court directive requiring the state’s anti-corruption agency to register cases under the Prevention of Corruption Act (PC Act) based on information forwarded by the Enforcement Directorate (ED).
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Pinarayi has been named the first accused in the case concerning alleged monthly payments made by CMRL to Exalogic. Riyas, a CPI(M) MLA and Pinarayi's son-in-law, has been named the first accused in a separate case concerning allegations of corruption proceeds and overseas fund transfers. Veena is the second accused in both cases.
The Vigilance action follows the high court’s October 9 order, setting aside the state government’s decision to conduct a preliminary inquiry through a Crime Branch special investigation team (SIT) without registering an FIR. The court held that the material forwarded by the ED disclosed alleged cognisable offences warranting a formal investigation.
ED evidence enough for Vigilance case: HC
The government has said it will comply with the court’s directive rather than challenge it in appeal. Home Minister Ramesh Chennithala had announced that the FIRs would be registered on Monday and that a special team comprising Vigilance officers would investigate the cases.
The immediate trigger for the FIRs was a dispute over how the state government should act on the ED’s findings. The central agency had forwarded information to the state police under Section 66(2) of the Prevention of Money Laundering Act (PMLA), flagging alleged offences that could attract provisions of the Prevention of Corruption Act.
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The government had opted for a preliminary inquiry by a Crime Branch SIT. However, Justice A Badharudeen held that the material forwarded by the ED contained sufficient information disclosing alleged cognisable offences and that another preliminary inquiry was unwarranted in the circumstances.
The court directed the Vigilance director to register an FIR without delay, investigate the allegations through competent officers and file a final report without undue delay. It also required the ED to forward the necessary documents to the state agency.
What are the charges?
The controversy started with allegations that CMRL, a Kochi-based minerals company, made payments to Exalogic despite questions over whether the firm had delivered the services for which it was paid.
The transactions came under scrutiny in 2023 following proceedings before the Income Tax Department’s Interim Board for Settlement. Exalogic had entered into an agreement with CMRL to provide IT and marketing services. Payments allegedly made during 2017-19, when the CPI(M)-led LDF was in power, subsequently became the subject of investigations by central agencies.
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The ED has alleged that CMRL paid approximately Rs 2.78 crore to Exalogic under the guise of consultancy and marketing services. Its findings also referred to payments made directly to Veena and alleged financial transactions that, according to the agency, warranted investigation under the Prevention of Corruption Act.
The second FIR is intended to examine allegations concerning Riyas, including suspected proceeds and overseas fund transfers, separately from the payments to Exalogic.
Political significance
The CPI(M) has consistently rejected the allegations against Pinarayi and his family, maintaining that the central agencies’ proceedings are politically motivated. The party has questioned the credibility of the ED’s allegations, which have become a major point of confrontation between the Left and the BJP-led Union government.
Also read: Pinarayi Vijayan calls ED’s CMRL charges ‘old allegations in a new script’
For the Congress-led UDF government, the decision to proceed with the FIRs also carries political significance. By choosing to comply with the court order rather than appeal against it, the government has committed itself to a formal investigation into allegations that have remained politically contentious.