The ED searched nine premises in Kozhikode linked to Cochin Minerals and Rutile Limited (CMRL) over a PMLA case involving corporate fraud and bribery. The probe targets fake expenses and payments to individuals, including Veena Vijayan.
The Directorate of Enforcement (ED), Kochi Zone, has conducted search operations at nine premises at Kozhikode on August 18 under the Prevention of Money Laundering Act (PMLA), 2002, in connection with corporate fraud and bribe payments done by M/s Cochin Minerals and Rutile Limited (CMRL).
According to a press release, the ED had initiated investigations under PMLA based on the investigations initiated by the Serious Fraud Investigation Office (SFIO) for corporate fraud and bribe payments. The SFIO filed a prosecution complaint on April 3, 2015, for corporate fraud. SFIO investigations revealed that fictitious cash expenses of Rs 182 crore were done by CMRL over a span of 15 years, which were used for bribing various persons.
Probe into Payments to Veena's Firm
One of the fake expenses booked by CMRL is towards the payment to Veena, daughter of P Vijayan, ex-Chief Minister of Keralam. The Company of Veena, M/s Exalogic Solutions Private Limited (a one-person company), received fraudulent payments totalling Rs 2.78 crore from CMRL under the guise of IT Consultancy Services. Further M/s Empower India Capital Investment Private Limited (EICPL), operated by Sasidharan Kartha, Managing Director of CMRL, extended loans to Exalogic totalling Rs. 50 Lakh, despite Exalogic failing to make timely repayments, the ED said in a release.
Handwritten Accounts Seized in Earlier Search
The agency further said the investigations done by ED before showed that Proceeds of Crime were generated by the management of CMRL led by SN Sasidharan Kartha and bribes were paid to various persons. Veena is one of the recipients of money from CMRL without rendering any services. Earlier, ED had conducted searches on Veena and promoters of CMRL on May 27 this year, the release said.
During the said search, ED found certain handwritten accounts maintained by Veena. The handwritten notes contained the names of the persons, amounts handled/ spent, amounts transferred to Dubai, etc. The accounts contained details of amounts handled in "AED" [Dubai Currency] as well as India Rupees, the release said. The ED said the amounts transferred to Dubai as per the notings are about 3.49 lakh AED [equivalent to about Rs 85 lakh]. The accounts for Indian Rupees maintained are for about Rs 20.05 crore [approx.]. The handwritten accounts were seized by ED, it added.
Further Evidence of Illicit Transactions
The digital devices seized from Veena also had a photograph of a SIM Card obtained in the name of another person for usage in a wifi router. It is suspected that the SIM and wifi router were obtained by her in the name of another person so as to use the same for communications through internet-based calls. All the persons who were named in the handwritten accounts of Veena and the person who had provided the SIM card were covered during the search, the investigative agency said in a press release.
During the search operations, several digital devices were seized, and statements were recorded. Evidence relating to the transfer of money using hawala channels was also found. The seizures made by ED show Veena was handling amounts beyond her known sources of income. The amounts stated in her handwritten accounts are over and above the amount received from CMRL. ED would initiate legal action as per law, the ED said. Further investigations are in progress. (ANI)
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