Two persons in VD Satheesan-led cabinet also received money from CMRL, claims MA Baby amid ED raids

New Delhi: CPM Politburo General Secretary MA Baby levelled serious allegations of broader political involvement on Wednesday, claiming that two ministers serving within the cabinet led by VD Satheesan had also accepted financial disbursements from Cochin Minerals and Rutile Ltd. (CMRL).

The remarks follow multi-city searches initiated by the Enforcement Directorate (ED) at the properties of former Kerala Chief Minister Pinarayi Vijayan and several connected individuals as part of a financial probe involving Cochin Minerals and Rutile Ltd (CMRL).

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In a post on X, Baby raised questions over the political context of the raid.

"Is the Congress-led UDF in Kerala complicit in this raid?" he asked, suggesting that the episode warranted scrutiny over possible political coordination.

ED officers deployed to 10 distinct locations across the state under the statutory framework of the Prevention of Money Laundering Act (PMLA). Among the sites subject to search operations was the rented residence utilised by the 81-year-old former Chief Minister in the state capital.

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The Core Allegations

The central case hinges on assertions that CMRL, a private manufacturing enterprise, executed unauthorised disbursements totalling 1.72 crore rupees between 2018 and 2019 to Exalogic Solutions, an information technology firm operated by Vijayan’s daughter, T Veena. Investigators maintain that the financial transfers occurred despite the IT consultancy rendering no actual services to the corporate entity.

Baby additionally demanded a comprehensive investigation into broader financial ties, asserting that two prominent figures currently serving within the state administration had similarly accepted capital from CMRL.

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Legal Infrastructure and Next Steps

The coordinated raids materialised less than 24 hours after the Kerala High Court dismissed a writ petition filed by CMRL management that had sought to legally quash the Enforcement Directorate's ongoing proceedings. The high court's ruling effectively cleared the path for the federal asset-recovery agency to expand its operational footprint.

The financial intelligence agency formally initiated its money laundering investigation in 2024, acting upon regulatory red flags concerning corporate transparency and suspected non-service expenditures. Vijayan, who completed his second term as chief minister earlier this year and currently serves as the leader of the opposition in the state assembly, has consistently denied the allegations, characterising them as orchestrated efforts to diminish his political standing.

With inputs from PTI