CMRL Irregularities: Alleged Payments to Ex-Kerala CM’s Daughter’s Firm Under Scanner
The case involving Cochin Minerals and Rutile Ltd (CMRL), a publicly listed company based in Kochi, Kerala, has drawn significant attention after investigative agencies alleged financial irregularities, including payments to a firm owned by the daughter of former Kerala Chief Minister Pinarayi Vijayan. The matter has unfolded over several years, with multiple agencies probing the company's affairs.
CMRL, incorporated in 1989, is primarily engaged in mineral sand processing and value addition. Its operations rely heavily on sourcing raw material, ilmenite, from public sector undertakings. The controversy first came to light in January 2019, when the Income Tax Department conducted searches under Section 132 of the Income Tax Act, 1961. The department discovered that CMRL had allegedly inflated expenditures by booking fictitious cash expenses under heads such as transportation and sludge handling, aggregating to approximately ₹133.82 crore during the financial years 2012-13 to 2018-19. This inflation of expenses purportedly generated unaccounted cash, which, according to the company’s management, was used for making illegal payments to ensure smooth business operations.
The Income Tax Interim Settlement Board (ITSIB), in August 2023, concluded that T. Veena, daughter of the former Chief Minister, and her now-defunct company, Exalogic Solutions Private Ltd, had received monthly payments from CMRL without evidence of services rendered in return. The ITSIB found that CMRL paid ₹5 lakh per month to Ms. Veena and ₹3 lakh to Exalogic, ostensibly as retainer fees for IT and marketing consultancy services. However, the board noted the absence of any proof that such services were actually provided.
Further investigation by the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs revealed more extensive alleged misconduct. The SFIO reported that CMRL had fictitious cash expenses of about ₹182 crore over 15 years, which were allegedly used for bribes to various individuals. It found that total payments to Exalogic amounted to ₹2.78 crore without corresponding services. Additionally, the SFIO flagged high remuneration to managing director Sasidharan S. Kartha and his son, joint managing director Saran S. Kartha, who together received ₹30.6 crore in cumulative remuneration from 2015-16 to 2022-23, despite the company not paying any dividends. It was also alleged that CMRL paid ₹91 crore for transport services to companies owned by Mr. Kartha’s family. Another entity, Empower India Capital Investments Private Limited (EICPL), operated by Mr. Kartha, extended loans of ₹50 lakh to Exalogic, which reportedly failed to make timely repayments.
Based on the SFIO’s prosecution complaint filed before a court in Ernakulam in April 2025, the Enforcement Directorate (ED) registered a case under the Prevention of Money Laundering Act (PMLA). Ms. Veena initially skipped summons issued by the ED, citing health reasons, but later appeared at the agency’s zonal office in Kochi on June 17, 2025, for questioning.
The controversy had political ramifications in Kerala. The opposition Congress-led United Democratic Front (UDF) repeatedly attacked the then Left Democratic Front (LDF) government, demanding the resignation of Chief Minister Pinarayi Vijayan after the SFIO report surfaced in April 2025. Mr. Vijayan rejected the allegations, maintaining that his daughter’s firm had entered into a legitimate contract to provide consultancy services and had done the work for which payments were made. The UDF attempted to keep the issue alive in the public domain ahead of subsequent elections.
The case remains under investigation, with agencies scrutinizing the flow of funds and the nature of transactions. All parties concerned have been asked to cooperate with the probe.