Thiruvananthapuram, Jun 18 (PTI) Senior CPI(M) leader A K Balan on Thursday alleged that Congress leader Rahul Gandhi only hugs "savarnas", or people from the same caste, claiming that this was why he embraced Narendra Modi but would not hug Pinarayi Vijayan.

Balan said Rahul's remark that he would hug Modi but not Vijayan reflected a "casteist mindset", asking why else he would make such a statement.

"It reflects a sense of superiority," he contended while speaking to reporters.

Rahul had recently, at an INDIA alliance meeting, reportedly remarked that he would not hug Vijayan due to their political rivalry in Kerala.

The remark prompted Vijayan to point out that the Congress leader had hugged Modi in Parliament.

Regarding the Enforcement Directorate's questioning of Vijayan's daughter Veena and the possibility of her being summoned again, Balan said the agency was free to continue its actions.

Veena was questioned by the ED for more than nine hours on Wednesday in connection with a money laundering case involving her now-defunct IT firm and its alleged links to mining company CMRL.

He said three High Courts had examined the matter, while the Income Tax Department, the Serious Fraud Investigation Office and the ED had all investigated it.

"Have they still not found anything? Now the ED has to say what material or evidence it has. But this is, in reality, part of a malicious prosecution aimed at mentally harassing someone," he contended.

"Anyway, let Veena and Vijayan take the course they wish to take. However, it is a politically motivated case, with Vijayan being the real target," he added.

Balan also expressed the view that the ED would not continue its probe in the case for much longer.

The probe pertains to allegations that Cochin Minerals and Rutile Ltd made payments amounting to Rs 2.78 crore to Exalogic without receiving any services in return.

According to the ED, another company, Empower India Capital Investments Private Limited (EICPL), operated by CMRL Managing Director Sasidharan Kartha, had extended loans worth Rs 50 lakh to Exalogic despite the company allegedly failing to make timely repayments.

The agency has alleged that Veena and the management of CMRL, led by Kartha, generated "proceeds of crime" through these transactions.

The ED registered a case under the Prevention of Money Laundering Act based on a prosecution complaint filed by the SFIO before a court in Ernakulam in April 2025.

The SFIO is the investigation arm of the Ministry of Corporate Affairs.

CMRL came under the scanner of central agencies following an Income Tax Department raid in January 2019, which allegedly uncovered financial irregularities, including expenses suspected to be fictitious and amounting to around Rs 130 crore. PTI HMP SSK