Kozhikode (Keralam) | CPI(M) leader P A Mohammed Riyas on Thursday refuted a report claiming that his bank account was used by his wife Veena T, daughter of former Keralam Chief Minister Pinarayi Vijayan, to divert funds received from CMRL, in connection with the ED's money laundering probe.

In a Facebook post, MLA Riyas said a news report alleging that the money Veena received from Cochin Minerals and Rutile Ltd (CMRL) for services was transferred to several people's accounts through his bank account, and that he had been questioned over the phone twice in connection with it, was "completely false".

He said he would take legal action against the media report and had refrained from responding to reports that appeared every day while the investigation was ongoing and he was dealing with the matter legally.

"I have the confidence to face it legally as I have done nothing wrong," Riyas said, adding that he and his party had already pointed out the political aspects of the matter.

The remarks came after the Enforcement Directorate (ED), in a statement on Wednesday, said it had seized some "handwritten" notes during searches at Veena's premises in May, which contained details of certain fund transfers to Dubai.

The agency also claimed that digital devices seized during the searches contained a photograph of a SIM card obtained under another person's name. Veena purportedly used the SIM card to make internet-based calls, the ED said.

The federal agency said it carried out fresh searches on August 18 in Kozhikode against people named in Veena's handwritten accounts and the person who allegedly provided her with the SIM card.

The money laundering case relates to Keralam-based mining company CMRL and Exalogic Solutions, a company promoted by Veena and now defunct.

The probe relates to allegations that CMRL paid Rs 2.78 crore to Exalogic Solutions Pvt Ltd without receiving any services in return.

The ED has questioned Veena and members of the CMRL board on multiple occasions as part of the investigation.

The agency registered the case under the PMLA based on a prosecution complaint filed by the Serious Fraud Investigation Office before a court in Kochi.