Centre orders probe against Exalogic Solutions, company owned by Kerala CM's daughter Veena Vijayan

The Union Ministry of Corporate Affairs has ordered a probe against Kerala Chief Minister Pinarayi Vijayan's daughter Veena Vijayan's company Exalogic Solutions. The financial transactions between Kerala State Industrial Development Corporation (KSIDC) and Cochin Mineral and Rutile Ltd. (CMRL) will also be investigated.

Thiruvananthapuram: In a major development, the  Union Ministry of Corporate Affairs has ordered an investigation into Exalogic Solutions, the company that Veena Vijayan, the daughter of Kerala Chief Minister Pinarayi Vijayan, owns. The investigation order was given based on the findings of the Income Tax Board after the 'monthly payment' controversy. Asianet News has received the inquiry order.

Inconsistencies were found earlier in a preliminary investigation that was based on a complaint made against Exalogic Solutions. According to reports, the union ministry demanded a thorough investigation of Veena's company in light of the findings. The financial transactions between Kerala State Industrial Development Corporation (KSIDC) and Cochin Mineral and Rutile Ltd. (CMRL) will also be investigated by a three-member investigative team.  A report regarding the same will be submitted in four months.

According to the order, Exalogics Solutions has committed several violations of the law. A detailed investigation was ordered after this became clear in the preliminary investigation conducted by the Registrar of Companies Bangalore. CMRL gave vague and evasive replies to the Registrar of Companies, Ernakulam. KSIDC was not even ready to reply. The order directed an investigation of the entire transactions of the three institutions in detail. Karnataka Deputy Registrar of Companies Varun BS, Chennai Deputy Director K.M. Shankara Narayanan, Pondicherry ROC, and A. Gokulnath are in charge of the investigation. 

Earlier, the Registrar of Companies had received a complaint seeking to investigate the transaction between Exalogic and CMRL. The investigation is being conducted under Section 210.1.C of the Companies Act, 2013. Earlier, the Income Tax Interim Settlement Board had found that CMRL illegally paid Rs 1.72 crore to Exalogic due to its relationship with the Chief Minister. Exalogic was found to have received this payment for services it did not perform.

However, the Chief Minister and the CPM argued that the amount was received for the services rendered. A direct inquiry by the Ministry of Corporate Affairs follows the findings of the Income Tax Interim Settlement Board. If this investigation reveals serious irregularities, the Series Fraud Investigation Office will take over the investigation.

Controversy erupted in the state last year when it was revealed that the chief minister's daughter received payments totaling Rs 1.72 crore from CMRL between 2017 and 2020.

A contract for consulting and software maintenance services was allegedly in place between CMRL and Veena's IT company. The claim was that CMRL paid the money on a monthly basis "due to her relationship with a notable person," even though her firm did not provide any services.