Won’t Bow to Paper Tiger: CPI(M) Hits Back at ED Over Charges Against Pinarayi

Speaking to reporters, Govindan rejected the recent central agency actions, asserting that such fabricated claims will find no traction in Kerala.

“The Enforcement Directorate is trying to manufacture false stories against Pinarayi Vijayan and P A Mohammed Riyas. None of these fabricated stories is going to work in Kerala. We do not know what stand the government is going to take in this matter,” Govindan said.

Directing criticism toward the opposition, Govindan accused the Congress party of hypocrisy and double standards regarding the ongoing inquiries.

“But the Congress has clearly adopted a double standard. They were the ones who had earlier questioned why Pinarayi Vijayan was not being arrested. What we need to know now is whether a deal is being worked out with the BJP,” he said.

Recalling the party's trajectory, Govindan stressed that the CPI(M) has evolved through grassroots mobilisation, systemic hardships and imprisonment, and warned that threats hold no weight against the Left.

“Our party has come this far after fighting from the grassroots, facing imprisonment and enduring every kind of hardship. We have fought even while being confined behind bars. So, nobody should come here trying to frighten us by showing us a ‘paper tiger’. We have no intention of being intimidated by such threats, and we will not bow down to them,” he said.

The remarks came amid escalating political tensions in Kerala after the Enforcement Directorate approached the state Director General of Police seeking an FIR against former Chief Minister Pinarayi Vijayan, his daughter Veena T and son-in-law P A Mohammed Riyas.

The Enforcement Directorate (ED) has formally approached the Kerala Police seeking registration of an FIR against Pinarayi Vijayan, his daughter T Veena and son-in-law P A Mohammed Riyas on corruption-related charges, officials said on Tuesday.

The agency communicated with the Kerala Police through a letter seeking registration of an FIR, as it is already investigating the Cochin Minerals and Rutile Limited (CMRL) financial transaction case under the Prevention of Money Laundering Act (PMLA).

The ED's Kochi zone is learnt to have written to the Kerala Police last week.

The move comes almost a month after the agency conducted searches at eight premises at various locations in Kozhikode in its ongoing CMRL case. The searches followed previous raids carried out by the ED on May 27 this year.

The federal agency said it found new evidence of a money trail involving Veena during the searches conducted in May.

CMRL is a publicly listed company in which 48.75 per cent of shares are held by the general public, while 13.41 per cent are held by the Kerala state public sector unit Kerala State Industrial Development Corporation, as of March 31, 2023.

The Income Tax Department had also conducted searches against CMRL in January 2019, during which certain fake expenses amounting to around Rs 130 crore were identified. CMRL subsequently admitted to the fake expenses before the Income Tax Settlement Commission (ITSC).

The ITSC, in its order, recorded findings of various alleged bribes paid by CMRL to different persons, based on admissions made by company personnel.

A complaint was subsequently filed before the Serious Fraud Investigation Office (SFIO) based on the Income Tax Department's findings, following which the Ministry of Corporate Affairs directed an SFIO investigation.

The ED initiated its PMLA investigation based on the SFIO proceedings. CMRL challenged the action before the Kerala High Court, arguing that there was no predicate offence. The court had issued an order restraining coercive action by the ED on April 12, 2024.

The SFIO filed a prosecution complaint on April 3, 2025, against Sasidharan Kartha and 12 others before the Additional Sessions Court-VII, Ernakulam, alleging corporate fraud. The SFIO prosecution complaint contains a scheduled offence under the PMLA.

According to the SFIO, S N Sasidharan Kartha, Managing Director of CMRL, and his son Saran S Kartha allegedly received Rs 30.63 crore in cumulative remuneration between financial years 2015-16 and 2022-23 despite the company not paying dividends.

The SFIO investigation also allegedly revealed fictitious cash expenses of Rs 182 crore over 15 years, which were allegedly used to bribe various persons. It further alleged that CMRL paid Rs 91 crore towards transport services to companies owned by the Sasidharan Kartha family.

The ED has alleged that one of the fake expenses booked by CMRL involved payments to Veena. Her company, Exalogic Solutions Private Limited, allegedly received fraudulent payments totalling Rs 2.78 crore from CMRL under the guise of IT consultancy services.

Further, Empower India Capital Investment Private Limited (EICPL), operated by CMRL Managing Director S N Sasidharan Kartha, allegedly extended loans totalling Rs 50 lakh to Exalogic despite the latter failing to make timely repayments.

The Kerala High Court dismissed a writ petition filed by CMRL on May 26 this year. The court held that initiation of a PMLA investigation is valid and does not require a predicate offence at the stage of initiating the investigation. It further noted that a predicate offence existed as of the date of the judgment, as the SFIO had filed its prosecution complaint containing a scheduled offence under the PMLA.

The ED's earlier investigations found that proceeds of crime were allegedly generated by the management of CMRL led by S N Sasidharan Kartha and that bribes were allegedly paid to various persons.

Officials said Veena was a recipient of money from CMRL without rendering services.

The ED also gathered intelligence that Veena was residing with her father in Thiruvananthapuram. Accordingly, the premises where she was residing were covered during the searches. When the search team reached the premises, her father was also present.

During the search conducted in May, the agency recovered several incriminating records and accounts, digital evidence, investments and bank fixed deposits. The ED has frozen about Rs 18.36 crore in around 242 accounts identified during the search operations. The evidence recovered is being analysed.