Kochi, India, August 20 (ANI): The Directorate of Enforcement (ED), Kochi Zone, conducted search operations at nine premises in Kozhikode on Aug. 18 under the Prevention of Money Laundering Act (PMLA), 2002, in connection with alleged corporate fraud and bribe payments involving Cochin Minerals and Rutile Limited (CMRL).
According to a press release, the ED initiated its investigation under the PMLA based on investigations conducted by the Serious Fraud Investigation Office (SFIO) into alleged corporate fraud and bribe payments. The SFIO filed a prosecution complaint on April 3, 2015, in connection with the corporate fraud allegations.
The SFIO investigation found that CMRL allegedly recorded fictitious cash expenses totaling Rs. 182 crore over a period of 15 years, which were allegedly used to bribe various individuals. One of the alleged fictitious expenses recorded by CMRL involved payments to Veena, daughter of P. Vijayan, a former chief minister of Kerala.
Veena’s company, Exalogic Solutions Private Limited, a one-person company, allegedly received fraudulent payments totaling Rs. 2.78 crore from CMRL under the guise of IT consultancy services.
The ED further said that Empower India Capital Investment Private Limited (EICPL), operated by CMRL Managing Director S.N. Sasidharan Kartha, extended loans totaling Rs. 50 lakh to Exalogic despite the company’s failure to make timely repayments.
According to the agency, its earlier investigation found that proceeds of crime were allegedly generated by CMRL’s management, led by S.N. Sasidharan Kartha, and that bribes were paid to various individuals. Veena was allegedly among the recipients of money from CMRL without rendering any services, the ED said.
The ED had previously conducted searches at the premises of Veena and CMRL promoters on May 27. During those searches, the agency said it found handwritten accounts allegedly maintained by Veena.
The handwritten notes contained names of individuals, amounts handled or spent, and amounts transferred to Dubai, among other details. The accounts recorded amounts in both United Arab Emirates dirhams (AED) and Indian rupees, according to the ED.
The agency said the amounts transferred to Dubai, based on the handwritten records, totaled approximately 349,000 AED, equivalent to about Rs. 85 lakh. The accounts maintained in Indian rupees covered approximately Rs. 20.05 crore. The handwritten records were seized by the ED.
Digital devices seized from Veena also contained a photograph of a SIM card obtained in another person’s name for use in a Wi-Fi router. The agency suspects that the SIM card and Wi-Fi router were obtained in another person’s name to facilitate internet-based communications.
The ED said that all individuals named in the handwritten accounts, as well as the person who allegedly provided the SIM card, were covered during the latest search operations.
During the searches, the agency seized several digital devices and recorded statements. Evidence relating to the transfer of money through hawala channels was also found, the ED said.
According to the ED, the seized records indicate that Veena was handling amounts beyond her known sources of income. The amounts recorded in the handwritten accounts were also allegedly over and above the funds received from CMRL.
The ED said it would initiate legal action in accordance with the law. Further investigation is underway. (ANI)
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