Kochi ED Cracks Down on Corporate Fraud and Bribe Network

The Enforcement Directorate (ED) in Kochi conducted searches in Kozhikode related to M/s Cochin Minerals and Rutile Limited's (CMRL) involvement in corporate fraud and bribery. Investigations revealed Rs 182 crore in fictitious expenses, with bribes paid to various entities, including Veena, daughter of Kerala's ex-Chief Minister. Digital evidence and records were seized.

The Enforcement Directorate (ED) in Kochi has ramped up its investigation into corporate fraud and bribery by executing search operations at nine locations in Kozhikode on August 18. This move is part of a probe under the Prevention of Money Laundering Act (PMLA), 2002, targeting M/s Cochin Minerals and Rutile Limited (CMRL), based on a Serious Fraud Investigation Office (SFIO) report.

The SFIO's findings unearthed ₹182 crore in fictitious cash expenses by CMRL over 15 years, used for bribery. Notably, payments were made to Veena, daughter of former Kerala Chief Minister, P Vijayan. Through her company, Exalogic Solutions, she received ₹2.78 crore disguised as IT consultancy fees. Additionally, loans totalling ₹50 lakh were extended to Exalogic by CMRL's managing director, despite Exalogic's repayment failures.

The ED highlighted evidence of crime proceeds managed by CMRL's SN Sasidharan Kartha, with significant funds directed to Veena without services rendered. Previous searches on Veena's premises revealed handwritten accounts tracking fund transfers to Dubai, alongside digital evidence. The ongoing investigation also uncovered illegal SIM card use and hawala-based fund transfers, marking significant progress in the case.