Pay-off case: CMRL refuses to provide ED access to important records

Cochin Minerals and Rutile Limited (CMRL), the business under investigation for money laundering via the business Exalogic Solutions, owned by the daughter of Chief Minister Pinarayi Vijayan, has declined to provide the Enforcement Directorate (ED) with information about its transactions.

The ED recently questioned top managers N C Chandrasekharan, Anju Kuruvilla, finance manager Suresh Kumar, chief financial manager Suresh Kumar P, and former cashier Vasudevan as part of the investigation. The authorities were requested by the agency to provide records pertaining to the deals that the CMRL had with other companies, such as Exalogic. But CMRL officials said they were secret and refused to provide them to the ED.

The records pertaining to the company’s activities, according to CMRL authorities, were a part of the Income Tax (I-T) Settlement Commission proceedings, which resulted in an order dated June 12, 2023. They insist that, in accordance with Section 245G of the I-T Act, these crucial records needed for the investigation of the money laundering case are private. They state that the settlement commission processes are final and cannot be reopened under the I-T Act or any other current legislation, including the PMLA in accordance with Section 245I of the I-T Act, an official said.

In an affidavit contesting the ED questioning process filed in the Kerala High Court, the CMRL also said that it is not possible to provide the agency with the records it requested for the present investigation. But according to ED authorities, every transactional record has to be examined since the business is being investigated for money laundering.