Exalogic case: ED faces coercion claims as CMRL official retracts statement against Pinarayi, others

Amid claims about a red diary and alleged hawala transactions in the CMRL-Exalogic case, media reports on Wednesday said CMRL Chief Financial Officer K.S. Suresh Kumar had submitted a retraction letter to the Enforcement Directorate (ED).

According to the reports, Kumar submitted a formal retraction statement to the Enforcement Directorate (ED), withdrawing his earlier statement recorded on May 15, 2024. He reportedly sent the retraction along with an affidavit to the ED Director.

The development could have implications for the agency's ongoing investigation, particularly because Kumar has reportedly alleged that his earlier statement was obtained through harassment, threats and coercion.

Allegations of threats and coercion

In the reported letter, Kumar is said to have completely withdrawn his May 15, 2024 statement. He allegedly told the ED Director that he was subjected to severe pressure and was threatened with arrest and non-bailable imprisonment if he did not give a statement dictated by the officers.

Reports said Kumar arrived at the ED office at around 11am but was made to wait until the afternoon. He was then taken to the room of a senior official, where he was allegedly threatened with arrest if he refused to provide the statement sought by the officers.

According to the reports, Kumar remained at the ED office until the early hours of the following morning. Exhausted and overwhelmed, he was allegedly made to give a statement in accordance with what the officers dictated and sign it at around 9.30am.

The letter reportedly also contains an allegation concerning his medication. Kumar is said to have collapsed from exhaustion, after which officials allegedly refused to provide him with the medicines he needed. His wife was reportedly allowed to hand over the medication only after his signature had been obtained.

Kumar reportedly alleged that ED officers forced him to state that CMRL had paid money to T. Veena's firm, Exalogic, without receiving any services in return.

He also allegedly said he was made to state that CMRL had illegally transferred funds to prominent political leaders, including then Kerala Chief Minister Pinarayi Vijayan, who is Veena's father.

Kumar reportedly made another serious allegation concerning CMRL Managing Director Sasidharan Kartha. He is said to have claimed that he personally witnessed ED officers forcefully press Kartha's ink-stained finger on documents at Kartha's residence.

The reported retraction by Kumar is not the first such development in the case.

Earlier, Waris Hasan, described in reports as a friend of Minister Muhammad Riyas, who is Veena's husband, had also submitted an affidavit retracting his statement.

The latest allegations therefore come amid continuing scrutiny of statements and evidence gathered by the ED as part of its investigation into the CMRL-Exalogic matter. 

ED recommendation for police FIR

The reports about Kumar's retraction have also emerged at a time when the Kerala government is yet to take a decision on an ED recommendation seeking registration of an FIR in the alleged CMRL bribery case.

The ED had recommended to the Kerala Police chief that a case be registered against Pinarayi Vijayan, T. Veena, Muhammad Riyas and others. The recommendation was based on what the ED described as evidence gathered during its investigation and searches conducted under the Prevention of Money Laundering Act (PMLA).