CMRL case: Ex-Kerala minister Riyas junks media narrative as ED searches friend’s locker, finds 50 sovereigns of gold

Fresh developments have emerged in the Enforcement Directorate (ED) probe into the CMRL-Exalogic case, with reports that the agency questioned Kozhikode-based businessman Mohammed Febish, who is said to be a friend of former Kerala minister P.A. Mohammed Riyas.

ED officers reportedly questioned Febish in a day-long session on Monday, September 14. The development comes amid reports about a purported red diary allegedly linked to Veena T, Riyas’ wife and daughter of former Kerala Chief Minister Pinarayi Vijayan.

According to media reports, Febish’s questioning is part of a preliminary inquiry into an alleged Rs 20.05-crore money-laundering network linked to an earlier corporate payment case.

Investigators reportedly opened and sealed a bank locker held by Febish on Friday, September 11. Cash and more than 50 sovereigns of gold were allegedly recovered from the locker.

Febish reportedly told investigators during Monday’s questioning that the gold belonged to his sister and had been kept in the locker for several years. He denied any link between the jewellery and unaccounted wealth or illicit money transfers.

CMRL-Exalogic case and alleged payments

The wider controversy centres on Cochin Minerals and Rutile Limited (CMRL), a private company accused of making fraudulent payments totalling Rs 2.78 crore to Exalogic Solutions, an IT consultancy owned by Veena T.

The central agency had initially alleged that the payments were made despite no consultancy services being provided.

The ED now reportedly alleges that the payments were bribes made in return for official favours during Pinarayi Vijayan’s tenure as Chief Minister.

Vijayan has rejected the bribery allegations, describing them as a rehashed political script. He has maintained that there is no documentary evidence to establish that any out-of-turn favours were granted.

Earlier petitions seeking criminal investigations into the matter were examined and dismissed by Kerala courts and the Supreme Court, with the proceedings citing a lack of specific evidence.

Purported red diary adds to political controversy

The political confrontation intensified following media reports about purported excerpts from an ED report.

According to these reports, nine pages from a red diary allegedly belonging to Veena T contained entries in UAE dirhams, foreign bank details and payment records naming people close to Riyas.

The documents circulating in the media also reportedly contain WhatsApp conversations referring to coded currency note numbers and contacts allegedly saved with hawala-related tags.

The claims have added a new dimension to the ongoing controversy, although the allegations and purported documents have been disputed by those named in the reports.

Riyas rejects ED allegations

Speaking in Kozhikode on Tuesday, September 15, Riyas rejected the allegations attributed to the agency and the media reports surrounding them.

He described the leaked details as a fabricated screenplay that deserved national recognition for creative writing.

Riyas alleged that investigation documents had been selectively leaked and claimed that the timing was deliberate. He said the reports emerged on the final day of the CPM state committee meeting and during a public rally attended by hundreds of thousands of supporters.

He also rejected reports that his wife had admitted to hawala transactions.

Riyas said the figures cited by the agency were projections for future business and had already been explained to investigators during three separate questioning sessions. He added that officers had not asked a single question about hawala transfers during those interrogations.

Riyas also responded to reports concerning a local messaging group called Nammude Beypore. He said the group was created solely to coordinate constituency development projects with residents and journalists.

He rejected suggestions that the group was being used as a channel for financial transactions.