All about the CMRL monthly payoffs case and the consequential high court ruling against Pinarayi Vijayan

The Kerala High Court directed the Vigilance and Anti-Corruption Bureau, or VACB, to register an FIR and begin an inquiry against Pinarayi Vijayan, his daughter Veena T and his son-in-law, CPI(M) MLA PA Mohammed Riyas. The ruling came on October 9 and was described as a major political setback for Vijayan and his party.

The case arose from alleged monthly payments by Cochin Minerals and Rutile Limited, or CMRL, to Exalogic Solutions, Veena’s now-defunct firm. An Income Tax settlement finding said Exalogic received ₹1.72 crore over three years, even though it allegedly provided no services. A petition by activist-lawyer KM Shajahan sought action under the Prevention of Corruption Act.

An FIR and inquiry are investigative steps, not a finding of guilt. The VACB must now examine the allegations and evidence. The article does not state the inquiry’s deadline or outcome. Vijayan and the CPI(M) have dismissed the allegations, while related proceedings by the ED and SFIO remain active.

The CMRL monthly-payments case concerns payments made by Cochin Minerals and Rutile Limited, a Kochi minerals manufacturer, to Exalogic Solutions. Exalogic was a Bengaluru-based software firm run by Veena T. The companies signed an agreement in 2017 for software and marketing services, but the payments were questioned because investigators said those services were not actually provided.

The Income Tax Interim Settlement Board found that Exalogic received ₹1.72 crore through monthly payments between 2017 and 2019. CMRL had described the transactions as business expenses. The Board instead said the department had shown payments to people connected with a prominent person and compensation for services that had not been rendered.

The finding led opposition parties to call the payments bribes linked to Pinarayi Vijayan, who was then chief minister. Vijayan and the CPI(M) rejected that allegation. Later, the SFIO and ED opened separate proceedings, while the High Court ordered a VACB FIR and inquiry under the Prevention of Corruption Act.

The figures differ because they come from separate findings and descriptions of the alleged transactions. The Income Tax Interim Settlement Board said Exalogic received ₹1.72 crore through monthly payments during a three-year period from 2017 to 2019. Those payments were questioned because Exalogic allegedly performed no services for CMRL.

The SFIO later filed a prosecution complaint alleging fraudulent payments of ₹2.70 crore benefiting Veena T and Exalogic. In the same complaint, it charged CMRL’s managing director and other senior officials over alleged fraudulent payments of ₹182 crore under the stated categories of sluice handling charges and transportation costs.

These are allegations recorded in tax and investigative proceedings, not convictions. The article does not explain whether the ₹2.70 crore fully overlaps with the ₹1.72 crore or includes additional transactions. The SFIO prosecution complaint was filed in April 2025 before the Special Court for Economic Offences in Kochi, and the trial had not begun.

The Income Tax Department said raids at CMRL and officials’ premises uncovered exaggerated expenses and diary entries recording payments to prominent political leaders, media houses, trade union leaders and police officials. The department also supported the finding that CMRL paid Exalogic despite services allegedly not being provided.

The ED said raids at premises linked to Veena and Riyas produced handwritten notes listing names, amounts handled and money transferred to Dubai. It put the Dubai transfer mentioned in the notes at 3.49 lakh AED, or ₹85 lakh. The ED also cited a photograph of a SIM card taken in another person’s name and said the seizures indicated money beyond Veena’s known income.

The SFIO alleged fraudulent payments of ₹2.70 crore benefiting Veena and Exalogic, plus ₹182 crore under other expense categories. Congress and BJP leaders described the monthly payments as bribes for mining-related favours. Vijayan and the CPI(M) rejected those allegations. The article does not report a final court finding.

The High Court’s order starts a formal investigative stage. Once the VACB registers an FIR, it can examine the alleged conduct, collect documents, question people and assess whether the Prevention of Corruption Act was breached. The inquiry concerns Vijayan, Veena T and PA Mohammed Riyas, based on allegations connected to CMRL’s payments to Exalogic.

The case began with a petition by KM Shajahan, who relied on findings from the ED’s inquiry into the payments. The High Court did not convict anyone in its October 9 ruling. It directed the agency to investigate and register the case, leaving the evidence and legal conclusions to later stages.

An FIR records allegations and authorises investigation; it does not prove that the accused committed an offence. A criminal conviction requires a court to assess the evidence and find guilt under the applicable legal standard. The article gives no timetable for the VACB inquiry and no final result. Vijayan and the CPI(M) have denied the allegations.

CMRL is the Kochi minerals manufacturer accused of making monthly payments and other disputed expense payments. Exalogic Solutions was Veena T’s Bengaluru-based software firm and the stated recipient of the monthly payments. Veena ran Exalogic. Pinarayi Vijayan was then Kerala’s chief minister when the payments occurred, and PA Mohammed Riyas is his son-in-law and a CPI(M) MLA.

The ED investigated possible violations of the Prevention of Money Laundering Act after registering a case in March 2024. The SFIO examined alleged corporate fraud and filed a prosecution complaint in April 2025. Its complaint named Veena and senior CMRL officials. The VACB is the Kerala agency ordered by the High Court to register an FIR and investigate possible corruption offences.

The article presents allegations and agency findings, not final convictions. Vijayan and the CPI(M) rejected the political allegations. The SFIO trial had not begun, while the High Court’s VACB order opened another investigative track involving Vijayan, Veena and Riyas.

The Prevention of Corruption Act is an Indian law used to investigate and prosecute alleged corruption involving public servants. The article does not explain its specific sections. In this case, the High Court was asked to direct action under the Act because payments to a private firm were alleged to be connected with a public official and possible government-related favours.

CMRL paid Exalogic Solutions, a private company run by Veena T, under an agreement for software and marketing services. The Income Tax Board said Exalogic received ₹1.72 crore despite allegedly providing no services. Congress and BJP leaders then alleged that the payments were bribes to Pinarayi Vijayan for favours to CMRL in the mining sector.

That alleged link is what can bring a private transaction into a corruption investigation. It must still be tested through evidence and legal proceedings. Vijayan and the CPI(M) dismissed the allegations. The High Court ordered the VACB to register an FIR and investigate, but the article reports no conviction or final finding.