Political Uproar as Kerala CM's Daughter Named in Illegal Payment Case
The Serious Fraud Investigation Office has named Veena T, daughter of Kerala Chief Minister Pinarayi Vijayan, in an illegal payment case, leading to demands for the CM's resignation.
The Serious Fraud Investigation Office (SFIO) has named Veena T, daughter of Kerala Chief Minister Pinarayi Vijayan, as an accused in an illegal payment case, triggering a political uproar in the southern state. The opposition Congress and BJP have demanded the CM's resignation as a federal investigating agency under the Ministry of Corporate Affairs, SFIO is mandated to probe serious corporate fraud cases. The present case involving Veena, the director of now-defunct IT firm Exalogic Solutions Pvt Limited, pertains to alleged irregularities in monetary transactions between the firm and Cochin Minerals Rutile Limited (CMRL), a Kerala-based minerals manufacturer.
The summary of charges in the SFIO complaint showed fraudulent payments of ₹2.70 crore benefiting Veena and Exalogic by CMRL. Veena has been named as an accused under section 447 (punishment for fraud) of the Companies Act, 2013, while other accused named by the agency include Exalogic Solutions, CMRL managing director Sasidharan Kartha, and Empower India Capital Investments Private Limited, a firm owned by Kartha and his wife.
The SFIO has also charged Kartha and other top officials of CMRL under relevant sections of the Companies Act, 2013, as well as the Companies Act, 1956, for fraudulent expenses of ₹182 crore under the guise of sludge handling charges and transportation costs. The Union Corporate Affairs Ministry had ordered the SFIO probe against Veena and CMRL in January last year. It was based on the findings of the Interim Settlement Board of the Income Tax Department in 2023 that Veena and Exalogic received monthly payments from CMRL to the tune of ₹1.72 crore in a three-year period despite the former rendering no services in the said period.
The office of Vijayan, who is currently in Madurai to attend the CPI(M) congress, and Veena did not respond to queries on the matter. Both CM and his party had earlier termed the allegations 'baseless'. Speaking to reporters, CPI(M) State Secretary MV Govindan said: 'The party faces no problems. We will deal with it. Let more details emerge.'