CMRL case: KPCC chief calls ED findings 'turning point', demands facts

KPCC President Sunny Joseph called the ED's findings in the CMRL-Exalogic case a "significant turning point," urging the CPM to respond with facts to allegations against former CM Vijayan's daughter Veena, instead of dismissing it as political.

KPCC President Sunny Joseph (Photo/ANI))

'Significant turning point': KPCC chief demands facts from CPM

KPCC President Sunny Joseph on Thursday said that the Enforcement Directorate's (ED) latest findings mark a "significant turning point" in an ongoing investigation in the CMRL-Exalogic case, and pressed the CPM to respond to the allegations surrounding former CM Vijayan's daughter Veena with facts rather than dismissing the case as politically motivated.

Addressing the media, Joseph said, "Yesterday marked a significant turning point in the developments surrounding the case. Everyone has seen the ED's press release. It contains details that appear to substantiate the allegations and strengthen the findings of the investigation so far."

He noted that the ruling CPM had not yet responded to the allegations, and said the public was awaiting clarity. "The CPM has not yet given a response to these allegations. That is the response the people of Kerala are waiting for."

Joseph said that both the state government and his own party are involved with the probe, stressing it was being conducted independently by central agencies. "Neither the Kerala government nor the Congress party has anything to do with this investigation. It is being conducted by central agencies, and the investigation had begun earlier. These are serious allegations that have already been widely raised in the Kerala media and among the people," he said.

He added that the legal process must be allowed to continue, while calling on the CPM to offer a credible, fact-based response. "The investigation should proceed and the law should take its course. Whatever response the CPM gives politically, it must be based on facts and should be credible to the people," he added.

Taking a further dig at the CPM, Joseph said, "There is no point in simply describing this as a political witch-hunt, because no one has so far been able to deny the facts mentioned in yesterday's ED statement."

ED probe reveals corporate fraud, payments to Veena's firm

The ED, Kochi Zone, earlier 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. 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.

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.

On KPCC leadership and internal party matters

Asked about when a full-time KPCC president would take charge, Joseph said the timeline rested with the party leadership. "The decision can be taken at any time. There is no fixed timeframe, as AICC general secretary Deepa Dasmunsi told all of you yesterday. That is what I have also heard," he said.

He said that the Congress, as a party, follows internal consultation before such decisions. "The Congress is a democratic party, and a strong democratic party at that. There will be the necessary discussions and consultations before any decision is taken...There are no specific conditions regarding this in the Congress constitution, nor has that been the practice followed by the party so far. Some people are already handling more than one responsibility effectively and continuing their work," he said.

His remarks come amid speculations about his dual responsibility as the Keralam Electricity Minister and KPCC chief with party norm of 'one person, one post'.

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