As Pinarayi daughter T Veena faces ED's 'hawala' taint, CPI(M) feels the heat

For the CPI(M), the challenge is to keep allies on its side and prevent panic among its second-rung leaders and cadre over the widening ambit of the ED probeThe Enforcement Directorate (ED) probe against Kerala leader of the Opposition Pinarayi Vijayan’s daughter T. Veena in an alleged bribery case involving her company Exalogic Solutions Private Limited and Cochin Minerals and Rutile Limited (CMRL) has taken a fresh turn with the agency’s multiple raids on August 18 in Kozhikode, the hometown of her politician husband P.A. Mohammed Riyas.One of the emerging allegations is that Veena had floated a shell company Laker India Corporation in Kozhikode and that she sent Rs 85 lakh to a Dubai bank account out of the Rs 2.78 crore Exalogic Solutions allegedly received from CMRL as annual maintenance charges without allegedly offering services in return. Veena is an accused in the Exalogic-CMRL case.The ED claims to have gained various financial leads from a purported dairy of Veena that allegedly indicates transactions worth Rs 20.5 crore carried out by her and associates through their accounts. The Rs 85 lakh transaction is part of it. There is buzz now that the ED may corner Veena for violations of the Foreign Exchange Management Act.The developments are a fresh political setback for Vijayan and the CPI(M). In May, the ED had raided Vijayan’s rented home in Thiruvananthapuram and other locations in the Exalogic-CMRL case. Violence had followed, with vehicles of the raiding officials in Thiruvananthapuram being attacked. Those who faced raids in Kozhikode on August 18 included N. Nandulal, destination coordinator of the District Tourism Promotion Council, Kozhikode, and linked to the CPI(M) youth wing DYFI (Democratic Youth Federation of India); as well as P. Nikhil, CPI(M) district secretariat member. Investigators believe both are close associates of Riyas.“When interrogated, T. Veena has failed to give valid reasons for the huge money transfers. We suspect a shell company, Laker India Corporation, was registered to do overseas money transfers. Veena is a managing partner in the firm with a stake of Rs 10.89 lakh,” a senior ED official, who did not wish to be named, told INDIA TODAY.“The company is running operations from a room in Pantheerankavu, 10 km from Kozhikode, without a signboard. There is only a paper sticker on the wall, with the GST number,” the official said.CPI(M) state secretary M.V. Govindan described the ED’s action as politically motivated. “The ED has no credibility and it is only trying to make a case without basis. We will fight the case both politically and legally,” he told the media on August 19.Riyas defended Veena’s business ventures, saying: “Veena is a successful entrepreneur. She has conducted her business only through legally permissible operations. The ED is making false allegations against her and my friends, who are businessmen,” Riyas said.The issue has acquired deeper political dimensions. Both the ruling Congress and Opposition BJP have demanded an explanation from Vijayan and the CPI(M). Congress state chief Sunny Joseph termed the ED’s charges as grave while BJP state vice-president Shone George said Vijayan should resign as leader of the Opposition.For the CPI(M), the challenge will not only be to defend its top leadership, but keep the Left coalition partners on its side and prevent panic from setting in among its second-rung leaders and cadre over what appears to be a widening ambit of an anti-corruption probe.Subscribe to India Today Magazine- EndsPublished By: Yashwardhan SinghPublished On: Aug 22, 2026 20:35 IST