Thiruvananthapuram (Keralam) [India], September 9 : Keralam Chief Minister V.D. Satheesan on Wednesday clarified that the CMRL-Exalogic controversy cannot be equated with standard political donations accepted by parties from corporate firms and individuals.
Speaking at a press conference, the Chief Minister asserted that the law will take its own course, adding that the matter will undergo due legal scrutiny and all proceedings will follow established legal avenues. 
"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 governments letter to state government can only be dealt legally," said VD Satheesan. 
VD Satheesan's remarks on the case came after KPCC President Sunny Joseph on August 20 said that the Enforcement Directorate's (ED) latest findings mark a "significant turning point" in an ongoing investigation in the CMRL-Exalogic case, and pressed the CPM to respond to the allegations surrounding former CM Vijayan's daughter Veena with facts rather than dismissing the case as politically motivated. 
Addressing the media, Joseph said, "Yesterday marked a significant turning point in the developments surrounding the case. Everyone has seen the ED's press release. It contains details that appear to substantiate the allegations and strengthen the findings of the investigation so far."
Joseph said that both the state government and his own party are involved with the probe, stressing it was being conducted independently by central agencies.
"Neither the Kerala government nor the Congress party has anything to do with this investigation. It is being conducted by central agencies, and the investigation had begun earlier. These are serious allegations that have already been widely raised in the Kerala media and among the people," he said.
He added that the legal process must be allowed to continue, while calling on the CPM to offer a credible, fact-based response.
Meanwhile, CPM State Secretary M V Govindan launched a sharp counter-offensive, alleging that the Enforcement Directorate (ED) is deliberately attempting to construct false accusations against former Chief Minister Pinarayi Vijayan and party leader P A Mohammed Riyas.
Speaking to reporters, Govindan rejected the recent central agency actions, asserting that such fabricated claims will find no traction in Kerala.
He said, “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.
Directing criticism toward the opposition, Govindan accused the Congress party of hypocrisy and double standards regarding the ongoing inquiries and said, “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.”
The controversy arose after the Company of Veena, M/s Exalogic Solutions Private Limited (a one-person company), allegedly received fraudulent payments totalling Rs 2.78 crore from CMRL under the guise of IT Consultancy Services. Further M/s Empower India Capital Investment Private Limited (EICPL), operated by Sasidharan Kartha, Managing Director of CMRL, extended loans to Exalogic totalling Rs. 50 Lakh, despite Exalogic failing to make timely repayments, the ED said in a release.
The agency further claimed that the investigations done by ED before showed that Proceeds of Crime were generated by the management of CMRL led by SN Sasidharan Kartha and bribes were paid to various persons. Veena is allegedly one of the recipients of money from CMRL without rendering any services. 
During the said search, ED allegedly found certain handwritten accounts maintained by Veena. The handwritten notes contained the names of the persons, amounts handled/ spent, amounts transferred to Dubai, etc. The accounts contained details of amounts handled in "AED" [Dubai Currency] as well as India Rupees, the release said.
SFIO investigations allegedly revealed that fictitious cash expenses of Rs 182 crore were done by CMRL over a span of 15 years, which were used for bribing various persons. One of the fake expenses booked by CMRL is allegedly towards the payment to Veena, daughter of P Vijayan, ex-Chief Minister of Keralam. 
Following the incident, the Directorate of Enforcement (ED), Kochi Zone, conducted search operations at nine premises at Kozhikode on August 18 under the Prevention of Money Laundering Act (PMLA), 2002, in connection with alleged corporate fraud and bribe payments done by M/s Cochin Minerals and Rutile Limited (CMRL).