Kerala CM signals cautious approach on ED letter against Pinarayi Vijayan; here's what he said

Kerala Chief Minister V.D. Satheesan on Wednesday said the CMRL-Exalogic controversy cannot be equated with routine political donations received by political parties from companies or individuals, stressing that the allegations require legal scrutiny.

Satheesan said no decision had been taken on the Enforcement Directorate's (ED) recommendation concerning former Chief Minister Pinarayi Vijayan. He said the state government would examine the material provided by the central agency and proceed only through established legal channels.

"Political parties will accept money from companies and personals. But this is a different case. ED have sent many cases for reference to the state home department. Even there are big cases Law will take its own course. CPIM is raising baseless allegations. We'll make Legal scrutiny and proceed legally. ED have approached with Prevention of money laundering act issues. When ED questioned Rahul Gandhi Congress workers didn't attack them. Government will function in accordance with the law. A Central government’s letter to state government can only be dealt legally," said VD Satheesan.

ED findings put CPM, Congress on opposing sides

The remarks came amid a political confrontation between the CPM and Congress over the ED's latest findings in the CMRL-Exalogic case.

The ED has alleged that M/s Exalogic Solutions Private Limited, a one-person company operated by Veena Vijayan, received ₹2.78 crore from CMRL under the guise of IT consultancy services. The agency has also alleged that CMRL-linked M/s Empower India Capital Investment Private Limited extended loans totalling ₹50 lakh to Exalogic despite repayment delays.

According to the ED, its investigation indicated that CMRL management generated proceeds of crime and made alleged bribe payments to various persons. The agency has alleged that Veena was among those who received money from CMRL without rendering services.

The ED also said handwritten accounts allegedly recovered during its search contained details of people, amounts handled or spent, and transfers to Dubai in Indian rupees and UAE dirhams.

Congress presses CPM for answers

KPCC president Sunny Joseph had described the ED's latest findings as a "significant turning point" and asked the CPM to respond to the allegations with facts rather than dismissing the investigation as politically motivated.

Joseph said neither the Kerala government nor the Congress was involved in the probe, maintaining that it was being conducted independently by central agencies.

The Congress has previously raised the CMRL-Exalogic controversy against the CPM and Pinarayi Vijayan. Satheesan's latest comments, however, put the immediate focus on the legal process rather than any political decision on the ED's recommendation.

CPM attacks ED move, questions Congress-BJP equation

CPM state secretary M.V. Govindan has rejected the allegations against Pinarayi Vijayan, accusing the ED of attempting to manufacture false claims against the former chief minister and party leader P.A. Mohammed Riyas.

Govindan also accused the Congress of adopting a double standard and questioned whether a political understanding was being reached with the BJP.

The issue therefore places the three major political forces in Kerala in a sensitive position. The CPM is portraying the ED action as politically motivated, while the Congress is demanding answers from the communist party over the allegations. The BJP, meanwhile, can use the dispute to target both parties over their positions on central-agency investigations.

The ED conducted searches at nine premises in Kozhikode on August 18 under the Prevention of Money Laundering Act in connection with alleged corporate fraud and bribe payments involving CMRL.