CMRL-linked ED raids in Kerala: What are the allegations against Kartha and son?
The Enforcement Directorate (ED) has accused Cochin Minerals and Rutile Limited (CMRL) Managing Director S. N. Sasidharan Kartha and his son, Saran S. Kartha, of corporate fraud and bribery.
On 27 May 2026, the ED’s Kochi Zone carried out coordinated searches at 10 locations across Kottayam, Ernakulam, Kannur, Thiruvananthapuram and Bengaluru. The action targeted the leadership of the publicly listed company, in which Kerala State Industrial Development Corporation holds a 13.41 per cent stake.
The ED probe under the Prevention of Money Laundering Act (PMLA) is based on findings by the Serious Fraud Investigation Office (SFIO).
₹30.63 crore remuneration under scrutiny
According to the agency, SFIO investigations found that S. N. Sasidharan Kartha and Saran S. Kartha received combined remuneration of ₹30.63 crore between the 2015-16 and 2022-23 financial years.
The ED said the payments were made during a period when the company did not pay dividends to shareholders.
In April 2025, the SFIO filed a prosecution complaint against the Managing Director and 12 others in connection with alleged corporate fraud.
The ED also alleged that the CMRL management generated “proceeds of crime” that were later used to pay bribes to various individuals.
Investigators identified alleged fictitious cash expenses worth ₹182 crore over 15 years. According to the agency, these expenses were used in bribery-related transactions.
The agency further alleged that CMRL paid ₹91 crore for transport services to companies owned by the Sasidharan Kartha family.
In another transaction flagged by investigators, M/s Empower India Capital Investment Private Limited, operated by S. N. Sasidharan Kartha, allegedly gave loans worth ₹50 lakh to M/s Exalogic Solutions Private Limited despite delays in repayment.
Kerala High Court backs ED probe
The searches came a day after the Kerala High Court dismissed a writ petition filed by CMRL on 26 May 2026 and upheld the ED investigation.
The court observed that a predicate offence existed based on the SFIO prosecution complaint.
The company had earlier admitted before the Income Tax Settlement Commission that it booked fake expenses of around ₹130 crore after a 2019 search related to financial irregularities.
During the latest searches, the ED froze around ₹18.36 crore held in 242 bank accounts.
The agency also recovered several records, digital evidence and investment-related documents, which are under examination.