The Enforcement Directorate (ED) on Wednesday carried out searches at the Kannur and Thiruvananthapuram residences of former Kerala Chief Minister Pinarayi Vijayan
The raids are being seen as a significant development in a case that has remained under the spotlight for several years.
At the centre of the controversy are allegations linked to Exalogic, the now-defunct company owned by Vijayan's daughter T. Veena.
Investigators are looking into claims that Exalogic received regular payments from private mining company Cochin Minerals and Rutile Limited (CMRL) between 2017 and 2021.
The allegation is that the money was paid even though no actual services were provided by the firm.
The developments have once again brought the spotlight back on what has become one of Kerala's most politically sensitive cases, involving allegations of financial irregularities, multiple investigations, and a prolonged legal battle.
How did the controversy begin?
The controversy traces its roots to a 2019 Income Tax Department search conducted at the premises of Kochi-based CMRL, an export-oriented mineral processing company.
During the investigation, authorities allegedly discovered records showing payments made to politicians, trade unions, media entities, and other individuals for what was described as ensuring the 'smooth functioning' of the company.
Among the entries that attracted the most attention were payments allegedly made to Exalogic Solutions Private Limited, an IT firm owned by Veena. Income Tax findings indicated that Exalogic had received approximately Rs 1.72 crore between 2017 and 2020.
The Income Tax Settlement Board reportedly concluded that the payments were made even though no services had actually been delivered by the company.
This became the central issue in the case and triggered political controversy.
The CPM, however, strongly rejected allegations of wrongdoing and maintained that Exalogic and CMRL had a legally valid business agreement.
The party repeatedly argued that the transactions were lawful and taxes had been duly paid.
SFIO probe and legal battle
The matter later moved beyond tax investigations and entered the domain of corporate fraud investigations. The Serious Fraud Investigation Office (SFIO), functioning under the Union Ministry of Corporate Affairs, began examining the transactions.
According to reports emerging from the investigation, the SFIO alleged that Exalogic received nearly Rs 2.70 crore from CMRL without rendering services.
The probe also reportedly examined larger financial transactions involving CMRL and alleged payments to various entities and individuals.
Several legal challenges followed. Congress MLA Mathew Kuzhalnadan and others approached courts seeking Vigilance and CBI investigations into the matter.
However, multiple courts dismissed such pleas, citing a lack of sufficient evidence to justify further action at that stage.
The legal process, however, did not end there. The SFIO investigation, later named Veena, and several company officials were accused, while petitions continued before higher courts.
In April this year, the Kerala High Court stayed further proceedings in the matter, temporarily slowing the legal process. Meanwhile, the issue has remained politically explosive.
Opposition parties have repeatedly accused the ruling Left government of shielding those involved.
At the same time, the CPIM has dismissed the allegations as politically motivated attempts to target the Chief Minister and his family.
On Tuesday, May 26, 2026, the Kerala High Court dismissed a plea by CMRL to quash the ED probe into the Exalogic pay-off case.
With fresh investigative action now reviving attention on the matter, the Exalogic-CMRL case is once again expected to dominate Kerala's political discourse in the run-up to key political developments in the state.